CLICK HERE TO REVIEW LEARNING OBJECTIVES QUESTION 2 Not complete Points out of 1

Question

CLICK HERE TO REVIEW LEARNING OBJECTIVES QUESTION 2 Not complete Points out of 1.00 PFlag question Earnings per Share Lucky Corporation began the year with a simple capital structure consisting of 240,000 shares of outstanding common 5,000 additional common shares were issued, and another 30,000 common shares were issued on August 1. The company had net income for the year earnings per share of common stock. Round to two decimal points. stock. On April 1, Earnings per Share $ Check Save Previous page Next page

Explanation / Answer

Earnings per share = Net Income / Weighted Average number of common shares

Weighted average number of common shares = shares * period for which they have been outstanding during the year

= 240000 * 12/12 + 5000 * 9/12 + 30000 * 5/12

= 240000 + 3750 + 12500

= 256250

Earnings per share = $589375 / 256250

= $2.30

Earnings per share = $2.30

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---