In: Accounting
Exercise 16-18
Flagstad Inc. presented the following data.
Net income $2,500,000
Preferred stock: 50,000 shares outstanding, $100 par, 8% cumulative, not convertible 5,000,000
Common stock: Shares outstanding 1/1 750,000
Issued for cash, 5/1 300,000
Acquired treasury stock for cash, 8/1 150,000
2-for-1 stock split, 10/1
Compute earnings per share. (Round answer to 2 decimal places, e.g. $2.55.)
Earnings per share $_______