Corporation B reported earnings per share of 10. Corporation B has 100,000 shares of common
stock outstanding and reported an increase in owners' equity of 400,000 for the period.
Corporation B paid 50,000 in interest expense during the period.
Corporation B paid dividends per
share of
A) 14.003. B) 6.00. C) 5.50. D) 6.50.
Question 2
Financial analysis
A) uses historical financial statements to measure a company's performance and in making
financial projections of future performance.
B) is accounting record-keeping using generally accepted accounting principles.
C) uses historical financial statements and is thus useful only to assess past performance.
D) relies on generally accepted accounting principles to make comparisons between companies
valid.
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