1. Compute Tidepool's EPS for the year. 2. Assume Tidepool's market price of a share of common stock is $ 7 per share Compute Tidepool's price / earnings ratio Tidepool Corp. earned net income of $133,340 and paid the minimum dividend to preferred stockholders for 2018. Assume that there are no changes in common shares outstanding during 2018. Tidepool's books include the following figures **Data Table Overview**This data table provides a detailed breakdown of a company's stock structure, including information on shares authorized, issued, and outstanding, as well as financial figures associated with each category of stock.**Preferred Stock**- **Details:** 3% Dividend Rate, $30 Par Value- **Shares:** 2,000 authorized; 1,000 issued and outstanding- **Financials:** $30,000**Common Stock**- **Details:** $1 Par Value- **Shares:** 85,000 authorized; 49,000 issued, 47,300 outstanding- **Financials:** $49,000**Additional Paid-In Capital**- **Type:** Common- **Financials:** $540,000**Treasury Stock**- **Type:** Common- **Shares:** 1,700 at cost- **Financials:** $(34,000)This comprehensive summary aids in understanding the stock composition and equity financials of the company.

Earning per share (EPS) is calculated by dividing net income earned by the company from the number of outstanding shares which is used for estimating the corporate value. EPS = Net Income / Weighted Number of outstanding shares

Answered: 1. Compute Tidepool's EPS for the year.…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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1. Compute Tidepool's EPS for the year.

2. Assume Tidepool's market price of a share of common stock is $ 7 per share Compute Tidepool's price / earnings ratio

Tidepool Corp. earned net income of $133,340 and paid the minimum dividend to preferred stockholders for 2018. Assume that there are no changes in common shares outstanding during 2018. Tidepool's books include the following figures

**Data Table Overview**

This data table provides a detailed breakdown of a company's stock structure, including information on shares authorized, issued, and outstanding, as well as financial figures associated with each category of stock.

**Preferred Stock**
- **Details:** 3% Dividend Rate, $30 Par Value
- **Shares:** 2,000 authorized; 1,000 issued and outstanding
- **Financials:** $30,000

**Common Stock**
- **Details:** $1 Par Value
- **Shares:** 85,000 authorized; 49,000 issued, 47,300 outstanding
- **Financials:** $49,000

**Additional Paid-In Capital**
- **Type:** Common
- **Financials:** $540,000

**Treasury Stock**
- **Type:** Common
- **Shares:** 1,700 at cost
- **Financials:** $(34,000)

This comprehensive summary aids in understanding the stock composition and equity financials of the company.

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