Washington enterprise had net income for 2016 of $111,000. Washington 78% File E
ID: 2891975 • Letter: W
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Washington enterprise had net income for 2016 of $111,000. Washington 78% File Edit View History Bookmarks People Window Help Take a Test Garlyn Smith Secure https://www.mathxl.com/Student/PlayerTest.aspx?testlda 152311536¢erwinayes; ACCT 2013 14W Spring 2017 Test: Final Exam Time Remaining: 00:48:43 Submit Te This Question: 1 pt This Test: 48 pts possi 20 of 48 (18 complete) IEQuestion Help Washington Enterprises had net income for 2016 of $111,000. Washington had 31,000 shares of common stock outstanding at the beginning of the year and 49,000 shares common stock outstanding at the end of the year. There were 8,000 shares of preferred stock outstanding all year. During 2016, Washington declared and paid preferred dividends of $25,000. What is Washington's eamings per share? (Round the answer to two decimal places.) O A. $2.15 B. $2.27 O rk O c. $2.78 O D. $1.76 Click to select your answer.Explanation / Answer
Average no of common shares oustanding : ($31000+$49000)/2=40,000
Earning Per shares =(Net income -prefered divident) / Average no. of common shares outstanding
=($111,000-$25,000)/40,000
=86000/40000
Earning per shares=$2.15
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