Basic Earnings Per Share (EPS)
Not what you're looking for?
An analyst gathered the following information about a company whose fiscal year end is December 31:
• Net income for the year was $10.5 million.
• Preferred stock dividends for $2 million were declared and paid for the year.
• Common stock dividends of $3.5 million were paid for the year.
• There were 20 million shares of common stock outstanding on January 1, 2011.
• The company issued 6 million new shares of common stock on April 1, 2011.
• The capital structure does not include any potentially dilutive convertible securities, options, warrants, or other contingent securities.
What would the company's basic earnings per share be for 2011? Show calculations.
Purchase this Solution
Solution Summary
This tutorial shows the student how to calculate basic earnings per share. All calculations are shown.
Solution Preview
See the attached file.
An analyst gathered the following information about a company whose fiscal year end is December 31:
• Net income for the year was $10.5 million.
• Preferred stock dividends for $2 million were declared and paid for the year.
• Common stock dividends of ...
Purchase this Solution
Free BrainMass Quizzes
Basics of corporate finance
These questions will test you on your knowledge of finance.
Introduction to Finance
This quiz test introductory finance topics.
Situational Leadership
This quiz will help you better understand Situational Leadership and its theories.
Production and cost theory
Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.
Cost Concepts: Analyzing Costs in Managerial Accounting
This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.