For the year that just ended, Orca Corporation had pre-tax income of $856,400, income tax expense of
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For the year that just ended, Orca Corporation had pre-tax income of $856,400, income tax expense of $239,792, and preferred dividends of $20,000. Meanwhile, Dolphin Incorporated had pre-tax income of $891,700, preferred dividends of $32,000, and EPS of $4.48. If Orca had 130,000 common shares outstanding and Dolphin had 133,000, then which of the following statements is accurate?
Orca had a higher EPS, whereas Dolphin had a lower income tax rate.
Orca had a higher EPS, whereas Dolphin had a higher income tax rate.
Orca had a lower EPS, whereas Dolphin had a higher income rate.
Orca had a lower EPS, whereas Dolphin had a lower income tax rate.
Related Book For
Fundamentals Of Corporate Finance
ISBN: 9780135811603
5th Edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
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