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Accounting 26th Edition by Carl Warren,James Reeve,Jonathan Duchac
Edition 26ISBN: 978-1285743615Accounting 26th Edition by Carl Warren,James Reeve,Jonathan Duchac
Edition 26ISBN: 978-1285743615 Exercise 53
EPS
For a recent year, OfficeMax and Staples are two companies competing in the retail office supply business. OfficeMax had a net income of $34,894,000, while Staples had a net loss of $210,706,000. OfficeMax had preferred stock of $28,726,000 with preferred dividends of $2,123,000. Staples had no preferred stock. The average outstanding common shares for each company were as follows:
a. Determine the earnings per share for each company. Round to the nearest cent.
b. Evaluate the relative profitability of the two companies.
For a recent year, OfficeMax and Staples are two companies competing in the retail office supply business. OfficeMax had a net income of $34,894,000, while Staples had a net loss of $210,706,000. OfficeMax had preferred stock of $28,726,000 with preferred dividends of $2,123,000. Staples had no preferred stock. The average outstanding common shares for each company were as follows:
a. Determine the earnings per share for each company. Round to the nearest cent.
b. Evaluate the relative profitability of the two companies.
Explanation
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a.
Earnings per share on common stock a...
Accounting 26th Edition by Carl Warren,James Reeve,Jonathan Duchac
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