Connect CSecure httpnewconnectmheducstion.com/fow/connect.htm Test 4 - Fall, 201

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Connect CSecure httpnewconnectmheducstion.com/fow/connect.htm Test 4 - Fall, 2017 Help Save & Exit Submit Savec 5 Epic Company earned net income of $936,000 this year. The number of common shares outstanding during the entire year was 380,000, and preferred shareholders received a $24,000 cash dividend Compute Epic Company's basic earnings per share Basic Earnings Per Share 02:17:41 Choose Numerator: Choose Denominator: Basic EPS Basic EPS per share Activate Windows to Settings to activate Windons Graw Hill Prev 5 of 26 Next> lype here to search

Explanation / Answer

Basic EPS = $2.4

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Basic earning per share = (Net income – preferred stock dividend)/Number of common stock

                                           = (936000 – 24000)/380000

                                           = 912000/380000

                                           = 2.4

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