On January 1, a corporation had 50,000 shares of common stock outstanding. On April 1, the company declared a 20% stock dividend, and on August 1, the company had a three-for-one stock split. On December 1, the company issued an additional 6000 shares. How do you arrive at earnings per share in the denominator?
Pearl Corporation earned net income of $370,000 in 2017 and had 108,000 shares of common stock outstanding throughout the year. Also outstanding all year was $840,000 of 9% bonds, which are convertible into 20,000 shares of common. Pearl’s tax rate is 40 percent.
Compute Pearl’s 2017 diluted earnings per share.
The book value per share for a corporation is:
a. The market price of the stock
b. The amount stockholders would receive if they sold their shares back to the corporation
c. Based on the excess of total assets over total liabilities
d. The cost of investments in stock of other corporations
The Beckett Company reports $700,000 of net income. The company also had the following account balances:
$5 Preferred stock, $100 par, 10,000 shares issued and outstanding: $1,000,000
Common stock, $10 par, 125,000 shares issued and outstanding: 1,250,000
There were no changes in the stock accounts during the year. EPS for the year is:
A. $5.60
B. $5.20
C. $0.56
D. $5.19
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