solve all questions E17.6 (LO 2) Finance (EPS-Simple Capital Structure) Esau Inc. presented the following data:Net income$5,500,000Preferred shares: 50,000 shares outstanding, $100 par, 8% cumulative, $5,000,000not convertible口Issued for cash, May 1, 2023Common shares: Shares outstanding, Jan. 1, 2023Acquired treasury shares for cash, Sept. 1, 2023 (shares cancelled)2-for-1 stock split, Oct. 1, 2023650,000100,000150,000As at January 1, 2023, there were no dividends in arrears. On December 31, 2023, Esau declared and paid the preferreddividend for 2023.Instructionsa. Calculate the weighted average number of common shares at December 31, 2023.b. Calculate earnings per share for the year ended December 31, 2023. Round to the nearest cent.c. Discuss what the effect would be on your calculation in part (a) if the stock split had been declared on January 30,2024, instead of on October 1, 2023, assuming the financial statements of Esau for the year ended December 31,2023, were issued after January 30, 2024.

A stock split is when a company decides to divide its shares into shares, which results in more…

Answered: E17.6 (LO 2) Finance (EPS-Simple…

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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The financial statements of Friendly Fashions include the following selected data (in millions):($ in millions) 2021 2020Sales $ 10,043 $ 11,134Net income $ 312 $ 818Stockholders’ equity $ 1,850 $ 2,310Average shares outstanding (in millions) 675 –Dividends per share $ 0.31 –Stock price $ 6.20 –Required:1. Calculate the return on equity in 2021.2. Calculate the dividend yield in 2021.3. Calculate earnings per share in 2021.4. Calculate the price-earnings ratio in 2021.
The December 31, 2023, equity section of ZoomZoom inc's balance sheet appears below ZooZoon Inc. Equity Section of the Balance Sheet December 31, 2023 Contributed capital: Preferred shares, $3.75 cumulative, 33,000 shares authorized and issued Preferred shares, $10 non-cumulative, 8,700 shares authorized and issued Common shares, 330,000 shares authorized and issued Total contributed capital Retained earnings Total equity Required: All the shares were issued on January 1, 2021 (when the corporation began operations) No dividends had been declared during the first two years of operations (2021 and 2022) During 2023, the cash dividends declared and paid totalled $578,300. 1. Calculate the amount of cash dividends paid during 2023 to each of the three classes of shares Show Transcribed Text Cumulative preferred shares Noncumulative preferred shares Common shares Required: All the shares were issued on January 1, 2021 (when the corporation began operations). No dividends had been de first…
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