Earnings per Share Lucky Corporation began the year with a simple capital struct

Question

Earnings per Share Lucky Corporation began the year with a simple capital structure consisting of 200,000 shares of outstanding common stock. On April 1, 15,000 additional common shares were issued, and another 35.000 common shares were issued on August 1. The company had net income for the year of $575.000. Calculate the earnings per share of common stock. Round to two decimal points. Earnings per Share $ o Check You have correctly selected 0 incorrect Marks for this submission: 0.00/2.00. Previous page Next page ave Aniswers lip

Explanation / Answer

Weighted average common shares oustanding = 200000+(15000/12*9)+(35000/12*5)= 225833.33 Earnings per share = 575000/225833.33= $2.55

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