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Determine earnings per share

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Q1. Financial Statement data for years ending December 31 for ABC Co. are shown below: 2021 2020 Net income P350,000 P195,000 Preferred Dividends P20,000 P15,000 Average number of common shares outstanding 75,000 shares 50,000 shares.

a. Determine earnings per share for 2021 and 2020.

b. Does the change in the EPS from 2020 to 2021 indicate a favorable or an unfavorable trend. Why?

Q2. Describe the characteristics of corporations.

Reference no: EM133008126

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