Rawdon Corporation's net operating income in Year 2 was $52,429, net income before taxes was $34,429, and the net income was $24,100.Total common stock was $360,000 at the end of both Year 2 and Year 1.The par value of common stock is $4 per share.The company's total stockholders' equity at the end of Year 2 amounted to $976,000 and at the end of Year 1 to $960,000.The company's earnings per share for Year 2 is closest to:

A) $0.58 per share
B) $0.38 per share
C) $0.27 per share
D) $5.84 per share

Question

yachika sharma · Accepted Answer

Final Answer : C, Explanation :  Earnings per share = Net Income ÷ Average number of common shares outstanding*= $24,100 ÷ 90,000 shares = $0.27 per share (rounded)*Number of common shares outstanding = Common stock ÷ Par value= $360,000 ÷ $4 per share = 90,000 shares

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