Use the below facts to calculate basic EPS for ABC Corp: Net Income $300,000 Stockholders Equity $500,000 Preferred Dividends $30,000 Weighted average common shares outstanding 200,000

1.35. Basic EPS = Income Available to common shareholders / Weighted average number of common shares outstanding Income available to common shareholders = Net Income - Preferred Dividends Basic EPS = (300,000-30,000)/200,000 = 1.35

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Use the below facts to calculate basic EPS for ABC Corp: Net Income $300,000 Stockholders Equity $500,000 Preferred Dividends $30,000 Weighted average common shares outstanding 200,000

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Multiple choice — select the best answer

A1.40
B1.25
C1.50
D1.35

✓ Correct answer: D. 1.35 Basic EPS = Income Available to common shareholders / Weighted average number of common shares outstanding Income available to common shareholders = Net Income - Preferred Dividends Basic EPS = (300,000-30,000)/200,000 = 1.35

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Use the below facts to calculate basic EPS for ABC Corp: <br/><br/>Net Income $300,000 <br/><br/>Stockholders Equity $500,000 <br/><br/>Preferred Dividends $30,000 <br/><br/>Weighted average common shares outstanding 200,000

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