Question
Earnings Per Share Financial statement data for the years ended December 31 for Cottontop Corporation follow: 20Y3 20Y2 Net income $1,025,000 $862,500 Preferred dividends $156,000
Earnings Per Share
Financial statement data for the years ended December 31 for Cottontop Corporation follow:
| 20Y3 | 20Y2 | |||
| Net income | $1,025,000 | $862,500 | ||
| Preferred dividends | $156,000 | $156,000 | ||
| Average number of common shares outstanding | 55,000 | shares | 45,000 | shares |
a. Determine the earnings per share for 20Y3 and 20Y2. Round your answers to two decimal places.
| 20Y3 | $fill in the blank 1 per share |
| 20Y2 | $fill in the blank 2 per share |
b. Does the change in the earnings per share from 20Y2 to 20Y3 indicate a favorable or unfavorable trend?
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Fundamentals Of Entrepreneurial Finance
Authors: Marco Da Rin, Thomas Hellmann
8th Edition
0199744750, 9780199744756
