Reference no: EM132899451

Questions -

Q1. Calculate Earnings per share on a company's common stock. If a company has net income of $100,000 and they have an average common stock share balance of 10,000 shares and they paid $5,000 in preferred dividend during the year. The earnings per share is:

A. $.90

B. $10.50

C. $9.50

D. $10.00

Q2. Jay Company has net income of $10,000 in 2010. They pay common stock dividends of $2,400 and preferred stock dividends of $1,000. Their beginning common shares outstanding is 20,000. The ending share balance is 15,000. What is their EPS (earnings per share) for the year?

A. .57 cents per sh

B. .51 cents per sh

C. .65 cents per sh

D. 1.15 cents per sh

Q3. The Rialto Theatre purchased a new projector costing $41,000 on January 1, 2010. Because of changing technologies, the projector is estimated to last four years after which it will be obsolete and have a salvage value of $1,000 as a collectors' item. Compute the depreciation expense for 2010 using:

A. 10,250

B. 10,000

C. 10,500

D. 9,000