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Barbur, Inc. reported net income of $9.6 million. During the year the average number of common shares outstanding was 3.2 million. The price of a share of common stock at the end of the year was $5. There were 480,000 shares of preferred stock outstanding on average and no dividends were declared and the preferred stock is noncumulative.
Problem 1: The EPS is approximately:
Multiple Choice
Option 1: $0.33.
Option 2: $2.76.
Option 3: $2.86.
Option 4: $3.00.
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