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Earnings Per Share | Accounting homework help

Planet & Son (PS) is expected to earn $7.87 per share next year. If the average P/E ratio of firms in PSA????1s industry is 17.5 based on forecast earnings, what market price should we expect for PS? Show Work a. $137.73 b. $141.66 c. $153.65 d. $164.27 e. Need more information


ABC has 20,000 common shares outstanding throughout the year. It also had 20,000, 6 percent preferred shares, par $20, (cumulative and nonconvertible) outstanding throughout the year. Net income was $300,000. The earnings per share amount would be:

A) $9.20

B) $10.00

C) $13.80

D) $15.00


DCE had 900 common shares outstanding on January 1, 20×3, issued 600 shares on May 1, and had income applicable to common shares of $5,200 for the year ending December 31, 20×3. Earnings per common share for 20×3 would be:

A) $5.78

B) $4.00

C) $3.60

D) $3.46


In determining basic earnings per share, the annual dividend on nonconvertible cumulative preferred shares should be:

A) Added back to net income whether declared or not.

B) Disregarded.

C) Deducted from net income only if declared.

D) Deducted from net income whether declared or not.

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