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EPS Calculation: (Part 3 of 3) DEF Co. earned income of $750,000 for the fiscal year ended Dec 31. At the beginning of that year DEF Co. had 40,000 $2.50 Preferred Shares (PS) outstanding and DEF started the year with 330,000 Common Shares (CS). During the year it sold an additional 90,000 CS on May 1, declared a 3:1 split on Jul 1, sold 6000 preferred shares on Sep 1, issued an additional 25,000 CS on Oct 1 and repurchased 360,000 shares on Dec 1. Calculate the EPS. For Part 3 of this question, calculate the basic EPS: a) 0.474 Ob) 0.554 Oc) 0.567 d) 0.796 e) 0.500

EPS Calculation: (Part 3 of 3) DEF Co. earned income of $750,000 for the fiscal year ended Dec 31. At the beginning of that year DEF Co. had 40,000 $2.50 Preferred Shares (PS) outstanding and DEF started the year with 330,000 Common Shares (CS). During the year it sold an additional 90,000 CS on May 1, declared a 3:1 split on Jul 1, sold 6000 preferred shares on Sep 1, issued an additional 25,000 CS on Oct 1 and repurchased 360,000 shares on Dec 1. Calculate the EPS. For Part 3 of this question, calculate the basic EPS: a) 0.474 Ob) 0.554 Oc) 0.567 d) 0.796 e) 0.500

FINANCIAL ACCOUNTING
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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EPS Calculation: (Part 3 of 3) DEF Co. earned income of $750,000 for the fiscal year ended Dec 31. At the beginning of that year DEF Co. had 40,000 $2.50 Preferred Shares (PS) outstanding and DEF started the year with 330,000 Common Shares (CS). During the year it sold an additional 90,000 CS on May 1, declared a 3:1 split on Jul 1, sold 6000 preferred shares on Sep 1, issued an additional 25,000 CS on Oct 1 and repurchased 360,000 shares on Dec 1. Calculate the EPS. For Part 3 of this question, calculate the basic EPS: a) 0.474 b) 0.554 Oc) 0.567 d) 0.796 e) 0.500
Transcribed Image Text:EPS Calculation: (Part 3 of 3) DEF Co. earned income of $750,000 for the fiscal year ended Dec 31. At the beginning of that year DEF Co. had 40,000 $2.50 Preferred Shares (PS) outstanding and DEF started the year with 330,000 Common Shares (CS). During the year it sold an additional 90,000 CS on May 1, declared a 3:1 split on Jul 1, sold 6000 preferred shares on Sep 1, issued an additional 25,000 CS on Oct 1 and repurchased 360,000 shares on Dec 1. Calculate the EPS. For Part 3 of this question, calculate the basic EPS: a) 0.474 b) 0.554 Oc) 0.567 d) 0.796 e) 0.500
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