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Solution Library
Short Answer Question Calculation Of Earnings Per Share On Common Stock
Question
Farah Snack Co. has earnings after taxes of $150,000. Interest expense for the year was $20,000; preferred dividends paid were $20,000; and common dividends paid were $30,000. Taxes were $22,500. The firm has 100,000 shares of common stock outstanding. Earnings per share on the common stock was
a). $1.30
b). $1.10
c). $0.75
d). $0.80
Summary
The question belongs to Accounting and it discusses about calculation of earnings per share on common stock.
Total Word Count 20
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