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Exercise 2-7 Suppose the following information is available for Callaway Golf Company for the years 2017 and 2016. (Dollars are in thousands, except share information.) 2017 2016 $1,114,000 71,200 855,338 $ 1,121,800 60,600 838,078 Net sales Net income (loss) Total assets Share information Shares outstanding at year-end Preferred dividends 64,507,000 66,282,000 There were 73,139,000 shares outstanding at the end of 2015 What was the companys earnings per share for each year? (Round answers to 2 decimal places, e.g. 15.25.) 2017: $ 2016: $What is the company earnings per share for each year?

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Answer #1

Answer:- Earning per Share (EPS):

Net Income – Preferred Dividends / Weighted Average number of Common shares outstanding

2016 =$60600000/(73139000 shares+66282000 shares/2)

=$60600000/69710500 share

=$.87 per share

2017 =$71200000/(66282000 shares+64507000 shares/2)

=$71200000/65394500 shares

=$1.09 per share

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