At December 31, 2016, Hansen Corporation had 48,000 shares of common stock and 5

Question

At December 31, 2016, Hansen Corporation had 48,000 shares of common stock and 5,400 shares of 8%, $100 par cumulative preferred stock outstanding. No dividends were declared or paid in 2016. Net income was reported as $170,000. What is basic EPS? (Round your answer to 2 decimal places.)

$2.64.

$3.54.

$3.99.

$3.18.

At December 31, 2016, Hansen Corporation had 48,000 shares of common stock and 5,400 shares of 8%, $100 par cumulative preferred stock outstanding. No dividends were declared or paid in 2016. Net income was reported as $170,000. What is basic EPS? (Round your answer to 2 decimal places.)

Explanation / Answer

net income $170000

- preference dividend ($43200)

Net income for equity holder $126800

no. of common share outstanding 48000

EPS (126800/48000) $2.64

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