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

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

Net income		$14,655,000
Retained earnings	$16,500,000

Preferred stock shares outstanding	2,000
Common stock shares outstanding at January 1, Year 2	7,375,000
Additional Common shares issued at July 1, Year 2	30,000
4-for-1 stock split at December 31, Year 2
Preferred Dividends	$10,000
Common Dividends	$75,000
Year 1 EPS	$3.60

Earnings per share = __________________ / ___________________* = ________

* Compute Denominator: Weighted average common shares outstanding

Date	Shares	Portion of year	Weighted Average Shares
January 1, Y2	7,375,000
July 1, Y2
Weighted Average December 31 before split
Stock split 4-for-1
*Total Weighted Average, 12/31/Y2
Note: Year 1 restated			$3.60 / 4 =_____

Is performance better or worse (circle) in Year 2 $ _____ as compared to Year 1 $ _____ ? Why?

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ekkarill92 answered 1 year ago

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