Whispering Inc. presented the following data. Net income $2,550,000 Preferred stock: 51,000 shares outstanding, $100 par,...

Whispering Inc. presented the following data.

Net income		$2,550,000
Preferred stock: 51,000 shares outstanding, $100 par, 8% cumulative, not convertible		5,100,000
Common stock: Shares outstanding 1/1		816,000
Issued for cash, 5/1		318,000
Acquired treasury stock for cash, 8/1		162,000
2-for-1 stock split, 10/1

Compute earnings per share. (Round answer to 2 decimal places, e.g. $2.55.)

Earnings per share

$enter earnings per share rounded to 2 decimal places

Expert Solution

Answer:

Weighted average shares

		Weighted average shares
Share outstanding	81600024/12	544000
Issued shares	113400023/12	567000
Acquired treasury stock	97200022/12	324000
Stock split	97200023/12	486000
Total		1921000

Earning per share = (Net income-Preferred dividend)/Weighted average shares

= (2550000-408000)/1921000

Earning per share = 1.12 per share

ekkarill92 answered 2 years ago

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