McDonnell-Myer Corporation reported net income of $1,323 million. The company ha

Question

McDonnell-Myer Corporation reported net income of $1,323 million. The company had 464 million common shares outstanding at January 1 and sold 36 million shares on Feb. 28. As part of an annual share repurchase plan, 6 million shares were retired on April 30 for $31 per share.

Calculate McDonnell-Myer's earnings per share for the year. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Earnings per share =

Calculate McDonnell-Myer's earnings per share for the year. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Earnings per share =

Explanation / Answer

Earning per share = net income / total share outstanding = 1323 / 490 = $2.70

Amount in millions Net income $                 1,323 Common share outstanding as of Jan 1 $                    464 New Shares sold on Feb 28 = 36 x 10/12 $                     30 Retired Share as on April 30 = 6 x 8/12 $                      (4) Total Number of shares outstanding at the end of year $                    490

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