Indigo Inc. presented the following data.
| Net income | $2,610,000 | |
| Preferred stock: 48,000 shares outstanding, $100 par, 8% cumulative, not convertible | 4,800,000 | |
| Common stock: Shares outstanding 1/1 | 769,200 | |
| Issued for cash, 5/1 | 291,600 | |
| Acquired treasury stock for cash, 8/1 | 156,000 | |
| 2-for-1 stock split, 10/1 |
Compute earnings per share. (Round answer to 2 decimal
places, e.g. $2.55.)
| Earnings per share | $ |
Weighted average outstanding shares = (769200+ 291600*8/12-156000*5/12)*2
= 1797200 shares
Earnings per share = (Net income - Preferred dividend)/weighted average outstanding shares
= (2610000-4800000*8%)/1797200
= $1.24 per share
Indigo Inc. presented the following data.Net income$2,610,000Preferred stock: 48,000shares outstanding, $100 par,...