CORRECT ANSWER C. COLLINS EARNINGS PER SHARE IS $2.90 AS SHOWN B...

80. - CMA EXAM SUPPORT PACKAGE 2 80. - CMA EXAM SUPPORT PACKAGE 2
CMA EXAM SUPPORT PACKAGE 2

80.

Correct answer c. Collins earnings per share is $2.90 as shown below.

Earnings per share

= (Net income – Preferred dividends) ÷ Common shares outstanding

= ($350,000 - $60,000*) ÷ 100,000

= $2.90

*Preferred dividends = ($100 x .06) x 10,000 = $60,000