Question

X Chrome Х Microsoft Office H X JForums - Post Vie X Connect O Mail - Coffey, Patr x M MHE Reader Х O https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%25 odule 5 Homework Saved 3 Ringmeup Inc. had net income of $139.200 for the year ended December 31, 2019. At the beginning of the year. 42.000 shares of common stock were outstanding. On May 1, an additional 20,000 shares were issued. On December 1, the company purchased 4,200 shares of its own common stock and held them as treasury stock until the end of the year. No other changes in common shares outstanding occurred during the year. During the year, Ringmeup paid the annual dividend on the 6.000 shares of 4.40%, $100 par value preferred stock that were outstanding the entire year. 2.5 points Required: Calculate basic earnings per share of common stock for the year ended December 31, 2019. (Do not round Intermediate calculations. Round your answer to 2 decimal places.) eBook Earnings per share Hint Print References

Answer 1

Basic e e quning ber share of common stock for the year ended December 31, 2019. os rot bi Earnings per share #2.05

Working Notes ! Computation of weighted average outstanding shower for the year ended Decembeu 31,2014 Outst Shares Particulars outstanding Weighted average number of shares Period outstanding Beginning Balance (a) 42000 (65 12 (axb/12) 42000 8 13333 20 000 | Additional stock issued on 01.08.2019 less: Treasuary onol.92.2019 Stock 4200 i k-350 Neighted average outstanding for the Year Dec 31, 2019 54 983 shares potom weddine Net Income for Equity share holden = Net Income - Preferred dividend ($ 139200 6000 x $100 x 4.4.7.) $26400 $112800 $ 1399.00 ج) راه فرار Basic Net • Income for Earming pen share Equity shave holder weighted Average outstanding shares $.112800 54983 Weighted avevage shares outstanding refers to the number of shares of a company calculated after adjusting for Changes in the share capital oven a reporting periodo es = $2.05 log DOOS Diego