Whispering Inc. presented the following data.
| Net income | $2,550,000 | |
| Preferred stock: 51,000 shares outstanding, $100 par, 8% cumulative, not convertible | 5,100,000 | |
| Common stock: Shares outstanding 1/1 | 816,000 | |
| Issued for cash, 5/1 | 318,000 | |
| Acquired treasury stock for cash, 8/1 | 162,000 | |
| 2-for-1 stock split, 10/1 |
Compute earnings per share. (Round answer to 2 decimal
places, e.g. $2.55.)
| Earnings per share |
$enter earnings per share rounded to 2 decimal places |
Answer:
Weighted average shares
| Weighted average shares | ||
| Share outstanding | 816000*2*4/12 | 544000 |
| Issued shares | 1134000*2*3/12 | 567000 |
| Acquired treasury stock | 972000*2*2/12 | 324000 |
| Stock split | 972000*2*3/12 | 486000 |
| Total | 1921000 | |
Earning per share = (Net income-Preferred dividend)/Weighted average shares
= (2550000-408000)/1921000
Earning per share = 1.12 per share
Whispering Inc. presented the following data. Net income $2,550,000 Preferred stock: 51,000 shares outstanding, $100 par,...