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