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?
a. 9.18%
b. 6.73%
c. 73.33%
d. 2.45%
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