I am having problems determining the EPS for common stock.
Gwinnett Park Co. reported net income of $916,800 for its fiscal year ended September 30, 2011. At the beginning of that year, 150,000 shares of common stock were outstanding. On February 1, 2011, an additional 30,000 shares were issues. On August 1, 2011, 12,000 shares were purchased as treasury stock. During the year, the company paid the annual dividend on 44,000 shares of 8%, $60 par value preferred stock that were outstanding during the entire fiscal year.
Calculate the earnings per share of common stock for the year ended September 30, 2011.
For your review, I have attached a formatted MS Excel spreadsheet ...
The attached file contains detailed illustrations and instructions for the calculation of earnings per share of common for the Gwinnett Park Company for it's fiscal year ending September 30, 2011.