5. Jasper Corp, has the following Stockholders’ Equity account balances and activity for Year 2. Net...

5. Jasper Corp, has the following Stockholders’ Equity account balances and activity for Year 2.

Net income		$14,750,000
Retained earnings	$13,250,000

Preferred stock shares outstanding	1,000
Common stock shares outstanding at January 1, Year 2	6,855,000
Additional Common shares issued at July 1, Year 2	20,000
3-for-1 stock split at December 31, Year 2
Preferred Dividends	$15,000
Common Dividends	$58,000
Year 1 EPS	$2.06

Earnings per share = __________________ / ___________________* = ________

* Compute Denominator: Weighted average common shares outstanding

Date	Shares	Portion of year	Weighted Average Shares
January 1, Y2	6,855,000
July 1, Y2
Weighted Average December 31 before split
Stock split 3-for-1
*Total Weighted Average, 12/31/Y2
Note: Year 1 restated			$2.06 / 3 =_____

Did performance improve in Year 2 as compared to Year 1? _________________Why?

Expert Solution

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