Exercise 10-16A Calculate and analyze ratios (LO10-8)

[The following information applies to the questions displayed below.] Financial information for Forever 18 includes the following selected data:

($ in millions except share data) 2021 2020

Net income $114 $156

Dividends on preferred stock $31 $22

Average shares outstanding (in millions) 200 300

Stock price $11.42 $10.37

1-a. Calculate earnings per share in 2020 and 2021. (Enter your answers in millions (i.e. 5,500,000 should be entered as 5.5).)

Earnings Per Share
2020			Average shares outstanding	=	0
2021				=	0

1-b. Did earnings per share increase in 2021?

multiple choice

• Yes

• No