Falls Church Corporation ended the year with revenues of $45,000 and expenses of $33,000. Its stockholders’ equity accounts total $490,000. Which of the following is Falls Church’s return on equity for the year?
Fleming Corporation began and ended the year with 50,000 outstanding shares of common stock net income for the year totaled $480,000. Preferred dividends amounted to $30,000. Which of the following would be Fleming’s basic earnings per share?
a. $9.60 per share
b. $16.00 per share
c. $6.00 per share
d. $9.00 per share
Which of the following would not force a company to compute diluted earnings per share in addition to basic earnings per share?
a. Convertible preferred stock
b. Stock warrants
c. Nonconvertible preferred stock
d. Stock options