In: Accounting
On December 31, 2017, Dow Steel Corporation had 750,000 shares
of common stock and 45,000 shares of 7%, noncumulative,
nonconvertible preferred stock issued and outstanding. Dow issued a
4% common stock dividend on May 15 and paid cash dividends of
$550,000 and $84,000 to common and preferred shareholders,
respectively, on December 15, 2018.
On February 28, 2018, Dow sold 60,000 common shares. In keeping
with its long-term share repurchase plan, 2,000 shares were retired
on July 1. Dow's net income for the year ended December 31, 2018,
was $2,850,000. The income tax rate is 40%.
Required:
Compute Dow's earnings per share for the year ended December 31,
2018.
numerator | denominator | EPS |
2766 | ? | ? |