McDonnell-Myer Corporation reported net income of $1,323 million. The company ha
ID: 2452646 • Letter: M
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.)
Answer:
Earnings per share equal______?
Calculate McDonnell-Myer's earnings per share for the year. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
Answer:
Earnings per share equal______?
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