Company A’s net profit last year was 2.5 million ￥, 1 million shares of common shares in circulation, 500,000 shares of preferred shares, and a dividend of 1 ￥ per share. If the price of common stock
A: 15
B: 12
C: 18
D: 22
A: 15
B: 12
C: 18
D: 22
举一反三
- Caprice 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 $1,440,000. Net earnings per share amounted to A: $2.88. B: $2.50. C: $2.06. D: $2.40.
- Guanghai Co. was organized on January 1, 2012 and issued 200 000 shares of common stock on that date. On July 1, an additional 100 000 shares were issued for cash. Net income for the year was 600 000 yuan. Net earnings per share amounted to A: 3.00 yuan. B: 2.50 yuan. C: 2.40 yuan. D: 2.00 yuan.
- Which ONE of the following statements is correct? A: EPS= (Net income - Preferred dividends) / weighted average number of common shares outstanding B: EPS= Net income / weighted average number of common shares outstanding C: EPS= (Net income - Preferred dividends) / ending number of common shares D: EPS= (Net income - common dividends) / weighted average number of preferred shares outstanding
- Which of the following statements is most accurate regarding a firm’s cost of preferred shares A firm’s cost of preferred stock is:（） A: the market price of the preferred shares as a percentage of its issuance price. B: the dividend yield on the firm’s newly-issued preferred stock. C: approximately equal to the market price of the firm’s debt as a percentage of the market price of its common shares.
- For example, if a company has 1.5 million shares outstanding at a share price of $25, its _ ___________ is $37.5 million.