Question Details

What is Daytona- earnings per share



1.	Dixie Company reports the following amounts for 2014.
Net income	$300,000
Average, stockholders' equity	2,000,000
Preferred dividends	84,000
Par value preferred stock	400,000
The 2014 rate of return on common stockholders' equity is
a.	18.8%.
b.	13.5%.
c.	15.0%.
d.	10.8%.


2.	During 2014 Miami Inc. had sales revenue $1,328,000, gross profit $728,000, operating expenses $398,000, cash dividends $90,000, other expenses and losses $40,000. Its corporate tax rate is 30%. What was Miami's income tax expense for the year?
a.	$60,000
b.	$180,000
c.	$398,400
d.	$87,000


3.	Daytona Corporation had 800,000 shares of common stock outstanding during the year. Daytona declared and paid cash dividends of $400,000 on the common stock and $320,000 on the preferred stock. Net income for the year was $1,760,000. What is Daytona- earnings per share?
a.	$1.75
b.	$1.70
c.	$1.80
d.	$1.30

4.	The income statement for Manassa Inc. shows income before income taxes $1,600,000, income tax expenses $820,000, and net income $780,000. If Manassa declared $300,000 of cash dividends on preferred stock and has 200,000 shares of common stock outstanding throughout the year, earnings per share is:
a.	$8.00
b.	$2.40
c.	$1.50
d.	$3.90


5.	When computing earnings per share,
a.	an adjustment related to preferred stock dividends is made in the numerator and denominator of the earnings per share formula.
b.	an adjustment for the preferred dividends is made in the denominator of the earnings per share formula.
c.	the dividends for cumulative preferred stock are deducted from net income only if the preferred dividends have been declared.
d.	the dividends for cumulative preferred stock are deducted from net income whether or not preferred dividends have been declared.





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