,On December 31, 2017, Dow Steel Corporation had 640,000 shares
of common stock and 34,000 shares of 8%, noncumulative,
nonconvertible preferred stock issued and outstanding. Dow issued a
4% common stock dividend on May 15 and paid cash dividends of
$440,000 and $73,000 to common and preferred shareholders,
respectively, on December 15, 2018.
On February 28, 2018, Dow sold 57,000 common shares. In keeping
with its long-term share repurchase plan, 6,000 shares were retired
on July 1. Dow's net income for the year ended December 31, 2018,
was $2,300,000. The income tax rate is 40%.
Required:
Compute Dow's earnings per share for the year ended December 31,
2018. (Do not round intermediate calculations.
Enter your answers in
thousands.)
|
Calculation of total weighted average no of shares | |||||||||
Particulars | No of shares | ||||||||
Total no of common stock | 665600 | ||||||||
add: weigheted avg no of share sold | 49400 | ||||||||
less: weighted avg no of share retired | -3000 | ||||||||
Total weighted avg no of shares | 712000 | ||||||||
Total no of common stock = share held+(no of share held*stock dividend%) | |||||||||
640000 share +640000*4% =665600 | |||||||||
weighted avg no of share sold = (period*no of share sold)*stock dividend | |||||||||
57000 share*10/12*1.04 = 49400 | |||||||||
weighted avg no of share retired = no of share retired*time | |||||||||
6000share *6/12 = 3000 shares | |||||||||
Earning per share = net income-preferred dividend/weighted avg no of common share outsttanding | |||||||||
earning per share = 2300000-73000/712000 | |||||||||
earning per share = 3.127 |
,On December 31, 2017, Dow Steel Corporation had 640,000 shares of common stock and 34,000 shares...
On December 31, 2017, Dow Steel Corporation had 640,000 shares of common stock and 34,000 shares of 8%, noncumulative, nonconvertible preferred stock issued and outstanding. Dow issued a 4% common stock dividend on May 15 and paid cash dividends of $440,000 and $73,000 to common and preferred shareholders, respectively, on December 15, 2018. On February 28, 2018, Dow sold 57,000 common shares. In keeping with its long-term share repurchase plan, 6,000 shares were retired on July 1. Dow's net income...
On December 31, 2017, Dow Steel Corporation had 640,000 shares of common stock and 34,000 shares of 8%, noncumulative, nonconvertible preferred stock issued and outstanding. Dow issued a 4% common stock dividend on May 15 and paid cash dividends of $440,000 and $73,000 to common and preferred shareholders, respectively, on December 15, 2018. On February 28, 2018, Dow sold 57,000 common shares. Also, as a part of a 2017 agreement for the acquisition of Merrill Cable Company, another 27,000 shares...
On December 31, 2017, Dow Steel Corporation had 650,000 shares of common stock and 35,000 shares of 9%, noncumulative, nonconvertible preferred stock issued and outstanding. Dow issued a 5% common stock dividend on May 15 and paid cash dividends of $450,000 and $74,000 to common and preferred shareholders, respectively, on December 15, 2018 On February 28, 2018, Dow sold 64,000 common shares. In keeping with its long-term share repurchase plan, 7,000 shares were retired on July 1. Dow's net income...
On December 31, 2020. Dow Steel Corporation had 640,000 shares of common stock and 304,000 shares of 8%, noncumulative, nonconvertible preferred stock issued and outstanding. Dow issued a 4% common stock dividend on May 15 and paid cash dividends of $440,000 and $73,000 to common and preferred shareholders, respectively, on December 15, 2021. On February 28, 2021. Dow sold 57,000 common shares. In keeping with its long-term share repurchase plan, 6,000 shares were retired on July 1. Dow's net income...
On December 31, 2017, Dow Steel Corporation had 630,000 shares of common stock and 33,000 shares of 7%, noncumulative, nonconvertible preferred stock issued and outstanding. Dow issued a 4% common stock dividend on May 15 and paid cash dividends of $430,000 and $72,000 to common and preferred shareholders, respectively, on December 15, 2018. On February 28, 2018, Dow sold 54,000 common shares. In keeping with its long-term share repurchase plan, 2,000 shares were retired on July 1. Dow's net income...
On December 31, 2017, Dow Steel Corporation had 750,000 shares of common stock and 45,000 shares of 7%, noncumulative, nonconvertible preferred stock issued and outstanding. Dow issued a 4% common stock dividend on May 15 and paid cash dividends of $550,000 and $84,000 to common and preferred shareholders, respectively, on December 15, 2018. On February 28, 2018, Dow sold 60,000 common shares. In keeping with its long-term share repurchase plan, 2,000 shares were retired on July 1. Dow's net income...
On December 31, 2020, Dow Steel Corporation had 750,000 shares of common stock and 45,000 shares of 7%, noncumulative, nonconvertible preferred stock issued and outstanding. Dow issued a 4% common stock dividend on May 15 and paid cash dividends of $550,000 and $84,000 to common and preferred shareholders, respectively, on December 15, 2021. On February 28, 2021, Dow sold 60,000 common shares. In keeping with its long-term share repurchase plan, 2.000 shares were retired on July 1. Dow's net income...
On December 31, 2017, Dow Steel Corporation had 760,000 shares of common stock and 46,000 shares of 8%, noncumulative, nonconvertible preferred stock issued and outstanding. Dow issued a 4% common stock dividend on May 15 and paid cash dividends of $560,000 and $85,000 to common and preferred shareholders, respectively, on December 15, 2018. On February 28, 2018, Dow sold 63,000 common shares. In keeping with its long-term share repurchase plan, 4,000 shares were retired on July 1. Dow's net income...
On December 31, 2017, Dow Steel Corporation had 650,000 shares of common stock and 35,000 shares of 9%, noncumulative, nonconvertible preferred stock issued and outstanding. Dow issued a 5% common stock dividend on May 15 and paid cash dividends of $450,000 and $74,000 to common and preferred shareholders, respectively, on December 15, 2018. On February 28, 2018, Dow sold 64,000 common shares. Also, as a part of a 2017 agreement for the acquisition of Merrill Cable Company, another 26,000 shares...
On December 31, 2017, Dow Steel Corporation had 790,000 shares of common stock and 49,000 shares of 7%, noncumulative, nonconvertible preferred stock issued and outstanding. Dow issued a 4% common stock dividend on May 15 and paid cash dividends of $590,000 and $88,000 to common and preferred shareholders, respectively, on December 15, 2018. On February 28, 2018, Dow sold 72,000 common shares. Also, as a part of a 2017 agreement for the acquisition of Merrill Cable Company, another 19,000 shares...