Answer
a
Work Step by Step
We use the equation for earnings per share to solve.
$eps=\frac{net\ income-preferred\ dividends}{shares\ outstanding}$
$eps=\frac{26000-2000}{4000}=\frac{24000}{4000}=6$
Accounting: Tools for Business Decision Making, 5th Edition
by Kimmel, Paul D.; Weygandt, Jerry J.; Kieso, Donald E.
Published by
Wiley
ISBN 10:
1118128168
ISBN 13:
978-1-11812-816-9
Chapter 2 - A Further Look at Financial Statements - Self-Test Questions - Page 73: 6
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