Question

J а 1 EN-6 on January 1, Vanessa Corporation had 60,000 shares of no-par common stock NL issued and outstanding. The stock has a stated value of $4 per share. During the year, the following transactions occurred. Apr. Issued 9,000 additional shares of common stock for $11 per share. June 15 Declared a cash dividend of $1.50 per share to stockholders of record on June 30. July 10 Paid the $1.50 cash dividend. Dec. 1 Issued 4,000 additional shares of common stock for $12 per share. 15 Declared a cash dividend on outstanding shares of $1.60 per share to stockholders of record on December 31.

Please Solve for EPS. The Net Income is 300,000. Please answer ASAP.

Answer 1

Earnings per share (EPS): B $300,000 A 1 Net income 2 3 Weighted average common shares: 4 Common shares, January 1 5 Add: Common shares issued, April 1 6 Add: Common shares issued, December 1 7 Weighted average common shares 8 Earnings per share (EPS) 9 (Net income/Weighted average common shares) 60,000 6,750 333 67,083 $4.47 Calculations are shown below: A B 1 Net income 300000 2 3 Weighted average common shares: 4 Common shares, January 1 =60000*(12/12) 5 Add: Common shares issued, April 1 =9000*(9/12) 6 Add: Common shares issued. December 1 =4000*(1/12) 7 Weighted average common shares =SUM(B4:B6) 8 Earnings per share (EPS) 9 (Net income/Weighted average common shares) =B1/B7 8