What are the annual earnings per share for the company

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Reference no: EM131964260

1. The net income of a firm is $1,200,000. The firm has 100,000 of preferred shares outstanding and 500,000 common shares outstanding. The preferred stock pays $3 per shares divident. Earning per share for the firm is

a. $3.00

b. $ 12.00

c. $ 2.00

d. $ 1.80

e. $ 2.40

2. A firm has net income of $500,000 and sales of 2,900,000. its interest expense is $40,000, and the firm's tax rate is 40%. its operating margin is

a. 17.2%

b. 44.5%

c. 41.6%

d. 28.7%

e. 30.1 %

3. You read in the stock pages of the Wall Street Journal that thr ABC company has a price earnings ratio of 5 and a closing stock price of $20. What are the annual earnings per share for the ABC company?

a. $1.00

b. $2.00

c. $3.00

d. $4.00

e. $ 5.00

Reference no: EM131964260

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