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In 2017, Moreno Cheeses had a net income of $42,390, paid preferred dividends of $6,000 and 18,000 shares of common stock outstanding. What was their earnings per share for 2017?a) $1.69 b) $2.69 c) $2.02 d) $2.36

Respuesta :

Answer:

Option c.

Step-by-step explanation:

In 2017, Moreno Cheeses had a net income of $42,390, paid preferred dividends of $6,000.

value of the shares = Net income - preferred dividends

                                = 42,390 - 6,000

                                = $36,390

To find their earnings per share = [tex]\frac{\text{Value of the shares}}{\text{total number of shares}}[/tex]

= [tex]\frac{36,390}{1,8000}[/tex]

= $2.02 per share

Option c) $2.02 per share

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