Required information

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	$	180	$	270
Dividends on preferred stock	$	33	$	24
Average shares outstanding (in millions)		225		375
Stock price	$	11.32	$	10.27

Exercise 10-16A Part 1

Required: 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).)

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

• Yes

• No

Explanation

1-b. Earnings per share remained about the same.