ZuoTi.Pro
Question

On January 1, 2016, a corporation had 10,380 shares of common stock outstanding, and on June...

On January 1, 2016, a corporation had 10,380 shares of common stock outstanding, and on June 1, it reacquired 6,000 shares. Despite a net loss for the year of $180,000, the company declared and paid cash dividends of $24,000 and $28,000 on common and preferred stock, respectively. What was the earnings per share for 2016?


(33.72)

(18.60)

(30.23)

(22.10)

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Earnings per share = Earnings available to common shareholders / weighted average common shares

Earnings available to common shareholders = Net income - dividend for preferred stock

= 180,000+28000 = ($ 208,000)

Weighted average common shares = (10,380 shares × 5/12) + ((10,380-6000)shares × 7/12)

= 4,325 + 2,555 = 6,880 shares

Earnings per share for 2016 = ($ 208,000) / 6,880 shares = ($ 30.23)

Hence option "c" is correct. Earnings per share for 2016 = ($ 30.23)

0 0
Add a comment
Know the answer?
Add Answer to:
On January 1, 2016, a corporation had 10,380 shares of common stock outstanding, and on June...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • On January 1, 2016, Bennett Corporation had 20,000 shares of common shares outstanding. Bennett sold another...

    On January 1, 2016, Bennett Corporation had 20,000 shares of common shares outstanding. Bennett sold another 2,600 shares on July 1, 2016, and reacquired 600 shares on November 1, 2016. Bennett earned $337,600 net income and has 15,000 shares of $10 par value, 6% cumulative preferred stock on which the last dividends were declared in 2012. Select the year’s basic earnings per share. $15.92 $15.65 $15.50 $15.08

  • On January 1, 2016, Wade Corporation had 24,000 shares of common stock outstanding. On April 1,...

    On January 1, 2016, Wade Corporation had 24,000 shares of common stock outstanding. On April 1, it reacquired 2,400 shares; on July 1, it issued 10,800 shares; on October 1, it issued another 9,600 shares; and on December 1, it reacquired 900 shares. What was the weighted average number of common shares outstanding for 2016? Is it .......28,900 or 26,950 or 41,400 or 29,925 Thanks!

  • Weaver Corporation had the following stock issued and outstanding at January 1, 2018 1. 56,000 shares...

    Weaver Corporation had the following stock issued and outstanding at January 1, 2018 1. 56,000 shares of $12 par common stock 2. 6,000 shares of $100 par, 8 percent, noncumulative preferred stock On June 10, Weaver Corporation declared the annual cash dividend on its 6,000 shares of preferred stock and a $4 per share dividend for the common shareholders. The dividends will be paid on July 1 to the shareholders of record on June 20 Required: Determine the total amount...

  • E14-1 & E14-2 E14-1 On January 1, Guillen Corporation had 95,000 shares of no-par common stock...

    E14-1 & E14-2 E14-1 On January 1, Guillen Corporation had 95,000 shares of no-par common stock issued and outstanding. The stock has a stated value of $5 per share. During the year, the dividends еnt following occurred. Аpr. 1 Issued 25,000 additional shares of common stock for $17 per share. June 15 Declared a cash dividend of $1 per share to stockholders of record on June 30. Paid the $1 cash dividend. July 10 1 Dec. Issued 2,000 additional shares...

  • 1)Madrid Corporation has 17,000 shares of $70 par common stock outstanding. On June 8, Madrid Corporation...

    1)Madrid Corporation has 17,000 shares of $70 par common stock outstanding. On June 8, Madrid Corporation declared a 5% stock dividend to be issued August 12 to stockholders of record on July 13. The market price of the stock was $81 per share on June 8. Journalize the entries required on June 8, July 13, and August 12. For a compound transaction, if an amount box does not require an entry, leave it blank. If no entry is required, select...

  • At December 31, 2016, Ivanhoe Corporation had the following stock outstanding. 10% cumulative preferred stock, $100...

    At December 31, 2016, Ivanhoe Corporation had the following stock outstanding. 10% cumulative preferred stock, $100 par, 107,760 shares $10,776,000 Common stock, $5 par, 4,025,000 shares 20,125,000 During 2017, Ivanhoe did not issue any additional common stock. The following also occurred during 2017. Income from continuing operations before taxes $21,900,000 Discontinued operations (loss before taxes) $3,345,000 Preferred dividends declared $1,077,600 Common dividends declared $2,400,000 Effective tax rate 35 % Compute earnings per share data as it should appear in the...

  • Weaver Corporation had the following stock issued and outstanding at January 1, Year 1: 113,000 shares...

    Weaver Corporation had the following stock issued and outstanding at January 1, Year 1: 113,000 shares of $10 par common stock. 9,500 shares of $150 par, 5 percent, noncumulative preferred stock. On June 10, Weaver Corporation declared the annual cash dividend on its 9,500 shares of preferred stock and a $3 per share dividend for the common shareholders. The dividends will be paid on July 1 to the shareholders of record on June 20. Required a. Determine the total amount...

  • At December 31, 2016, Grouper Corporation had the following stock outstanding. 10% cumulative preferred stock, $100...

    At December 31, 2016, Grouper Corporation had the following stock outstanding. 10% cumulative preferred stock, $100 par, 109,101 shares $10,910,100 Common stock, $5 par, 4,021,360 shares 20,106,800 During 2017, Grouper did not issue any additional common stock. The following also occurred during 2017 Income from continuing operations before taxes Discontinued operations (loss before taxes) Preferred dividends declared Common dividends declared Effective tax rate $23,507,100 $3,330,000 $1,091,010 $2,082,400 35 % Compute earnings per share data as it should appear in the...

  • Weaver Corporation had the following stock issued and outstanding at January 1, 2018: 1.65,000 shares of...

    Weaver Corporation had the following stock issued and outstanding at January 1, 2018: 1.65,000 shares of $12 par common stock. 2. 9.000 shares of $70 par, 5 percent, noncumulative preferred stock. On June 10, Weaver Corporation declared the annual cash dividend on its 9,000 shares of preferred stock and a $3 per share dividend for the common shareholders. The dividends will be paid on July 1 to the shareholders of record on June 20. Required: Determine the total amount of...

  • 26. The ZZ Corporation had the following shares of stock outstanding at December 31, 2019: Common...

    26. The ZZ Corporation had the following shares of stock outstanding at December 31, 2019: Common Stock, $50 par value, 40,000 shares outstanding; and Preferred Stock, 6 percent, $100 par value, cumulative,10,000 shares outstanding. Dividends for 2017 and 2018 were in arrears. On December 31, 2019, ZZ declared total cash dividends of $250,000. The total amounts payable to preferred stockholders and common stockholders, respectively, are: $60,000/$190,000 $120,000/$130,000 $125,000/$125,000 $180,000/$70,000

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT