CFA Practice Question

There are 534 practice questions for this study session.

CFA Practice Question

Susan Co. had 300,000 common shares issued and outstanding on December 31, 2010. No common shares were issued during 2011. On January 1, 2011, Susan issued 200,000 nonconvertible preferred shares. During 2011, Susan declared and paid $100,000 cash dividends on the common shares and $80,000 on the preferred shares. Net income for the year that ended December 31, 2011 was $620,000. What should Susan's 2011 earnings per common share be?
A. $2.07
B. $1.80
C. $1.73
Explanation: ($620,000 - $80,000)/300,000 = $1.80

User Contributed Comments 3

User Comment
jomasepu What should be Susan´s 2002 basic EPS
Gina these are the basic EPS: NI-PD/#WACSO
there is no dilution
geogon2000 Why do you subtract cash div on pref shares and not common shares from NI?
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