Calcula ended December 31, 2013. At the beginhning outstanding. On May 1, an additional 10,000 shares were issued. On year, stock were stocnber 1, the company purchased 5,000 shares of its own common stock and held them as treasury stock until the end of the year. No other changes in common shares outstanding occurred during the year. During the year, Ringmeup, Inc., paid annual dividend on the 8,000 shares of 3.5%, $100 par value preferred stock that were outstanding the entire year. Required: Colculate basic earnings per share of common stock for the year ended Decem- arofer
Calcula ended December 31, 2013. At the beginhning outstanding. On May 1, an additional 10,000 shares were issued. On year, stock were stocnber 1, the company purchased 5,000 shares of its own common stock and held them as treasury stock until the end of the year. No other changes in common shares outstanding occurred during the year. During the year, Ringmeup, Inc., paid annual dividend on the 8,000 shares of 3.5%, $100 par value preferred stock that were outstanding the entire year. Required: Colculate basic earnings per share of common stock for the year ended Decem- arofer
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:2007
LO 7
endedere outstanding. On May 1, an additional 10,000 shares were issued. On
Stocmber 1, the company purchased 5,000 shares of its own common stock and
Deceem as treasury stock until the end of the year. No other changes in common
shares outstanding occurred during the year.
dn annual dividend on the 8,000 shares of 3.5%, $100 par value preferred stock that
During the year, Ringmeup, Inc., paid
were outstanding the entire year.
Required:
Calculate basic earnings per share of common stock for the year ended Decem-
ber 31, 2013.
uplain the EPS effect of convertible preferred
fircal year ended January 3
atock we
Expert Solution

Step 1
Weighted average number of shares Outstanding = ( 40,000 * 12 months + 10,000 * 8 months - 5,000 * 1 month) / 12
Weighted average number of shares Outstanding = 555,000 / 12 months
Weighted average number of shares Outstanding = 46,250
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