55.Earnings per share figures are shown in the income statement:
A. For income before extraordinary items and for income from continuing operations, as well as for net income.
B. For common stock as well as for preferred stock.
C. For all publicly owned, as well as for all privately held, corporations.
D. As an optional disclosure for all corporations, and may be omitted completely or disclosed in a footnote at the option of the issuing corporation.
56.The numerator in calculating earnings per share is reduced for:
A. Noncumulative preferred dividends declared.
B. Common dividends.
C. Common stock dividends.
D. Any form of dividend.
57.All things being equal, if investors expect earnings to increase substantially from current levels, the price/earnings ratio will:
A. Be quite low.
B. Be quite high.
C. Not change.
D. Not be affected by income expectations.
58.The common stock of Securetech Corporation consistently sells at a market price of 20 times earnings (i.e., at a p/e ratio of 20). What would be the most likely effect of a 10 cent increase in Securetech's basic EPS?
A. An increase in market price of approximately 10 cents per share.
B. An increase in market price of approximately $2 per share.
C. A reduction in the p/e ratio due to the larger EPS.
D. Nothing, since market price reflects expectations of future earnings.
59.Which of the following has
no
effect on the computation of earnings per share for the current period?
A. The amount of cash dividends declared or paid to preferred stockholders.
B. The amount of cash dividends declared or paid to common stockholders.
C. Net income.
D. The number of shares of common stock issued.
60.General Corporation was organized on January 1 and issued 500,000 shares of common stock on that date. On July 1, an additional 200,000 shares were issued for cash. Net income for the year was $5,184,000. Net earnings per share amounted to:
A. $7.41.
B. $7.98.
C. $8.41.
D. $8.64.
61.Platinum Company reports net income of $520,000 for 2015 and declared a cash dividend of $1 per share on each of its 100,000 shares of common stock outstanding. What are earnings per share for 2015?
A. $5.20 per share.
B. $1.00 per share.
C. $1.20 per share.
D. $4.80 per share.
62.Designs, Inc. had 4,000 shares of $7, $100 par preferred stock and 50,000 shares of common stock outstanding throughout 2015. During 2015, Designs declared a dividend of $7 per share on its common stock. Compute earnings per share for 2015 if Designs' income statement showed net income of $630,000.
A. $7.00 per share.
B. $6.00 per share.
C. $12.04 per share.
D. $12.60 per share.
63.Unique Corp. had 50,000 shares of $5 preferred stock, $100 par, and 100,000 shares of $1 par common stock outstanding throughout the year. Net income for the year was $780,000, and Unique declared and distributed a cash dividend of $1 per share on its common stock. Earnings per share amounted to:
A. $7.80.
B. $1.00.
C. $5.30.
D. $2.30.
64.A company had 240,000 shares of common stock outstanding on January 1 and then sold 60,000 additional shares on April 30. Net income for the year was $426,750. What are earnings per share?
A. $1.42.
B. $1.52.
C. $1.78.
D. $7.11.