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    Basic Earnings Per Share (EPS)

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    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.

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    https://brainmass.com/business/business-and-industry-analysis/basic-earnings-share-eps-575089

    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 ...

    Solution Summary

    This tutorial shows the student how to calculate basic earnings per share. All calculations are shown.

    $2.19