Oregon, inc. reported net income of $105,000. during the current year, the company had 5,000 shares of $100 par, 5% preferred stock and 10,000 of $5 par common stock outstanding. oregon's earnings per share is

a. $8.00
b. $18.00
c. $5.08
d. $5.00

option (a) $8.00

Explanation:

Data provided in the question:

Reported net income = $105,000

Number of preferred stocks = 5,000

Par value of preferred stocks = $100

Number of outstanding stocks = 10,000

Now,

Earnings per share

= (Net Income - Preferred Stock Dividend) ÷ ( Common stock outstanding  )

= ( $105,000 - 5000 × 100 × 5% ) ÷ 10,000

or

Earnings per share = $8

Hence,

The correct answer is option (a) $8.00

month 1 start amount =$3287.90 interest=(3287.90x0.0145/12)3.97 total to pay=$3291.81 paid =$1200 balance =$2,091.87

month 2 starting amount= $2,091.87 interest =$25.28 total to pay =$2117.15 paid =$1200 balance $917.15

month 3 starting amount =$917.15 interest =$11.08 total to pay =$928.23 paid =$928.23 balance =$0 total to pay 1200+1200+928.23 = $3328.23 it will take 3 months to pay a total of $3328.23