David and Douglas invested 500 each to capitalize Finns Fridges
David and Douglas invested $500 each to capitalize Finns’ Fridges. To allow for future flexibility (such as selling shares to other investors), they placed a “par value” of $10 on each share; thus each brother owns 50 shares. Based on the net income figure from Practice Problem 23, assuming no tax, what were the earnings per share (EPS) of Finns’ Fridges for its first year of operations?
Twin brothers David and Douglas Finn started a small business from their college dormitory room. Finns’ Fridges purchased several small refrigerators to rent to other students for use in their rooms. At the end of their first year of operations, the brothers’ records showed the informationbelow.
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