Exercise 19-12 (Algo) EPS; shares issued; stock dividend [LO19-5, 19-6] For the year ended December 31, 2021, Norstar Industries reported net income of $990,000. At January 1, 2021, the company had 1,170,000 common shares outstanding. The following changes in the number of shares occurred during 2021: Apr. 30 Sold 110,000 shares in a public offering. May 24 Declared and distributed a 5% stock dividend. June 1 Issued 126,000 shares as part of the consideration for the purchase of assets from a subsidiary. Required: Compute Norstar's earnings per share for the year ended December 31, 2021. (Enter your answers in thousands. Round "EPS" answer to 2 decimal places. Do not round intermediate calculations.)
Exercise 19-12 (Algo) EPS; shares issued; stock dividend [LO19-5, 19-6] For the year ended December 31, 2021, Norstar Industries reported net income of $990,000. At January 1, 2021, the company had 1,170,000 common shares outstanding. The following changes in the number of shares occurred during 2021: Apr. 30 Sold 110,000 shares in a public offering. May 24 Declared and distributed a 5% stock dividend. June 1 Issued 126,000 shares as part of the consideration for the purchase of assets from a subsidiary. Required: Compute Norstar's earnings per share for the year ended December 31, 2021. (Enter your answers in thousands. Round "EPS" answer to 2 decimal places. Do not round intermediate calculations.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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![Exercise 19-12 (Algo) EPS; shares issued; stock dividend [LO19-5, 19-6]
For the year ended December 31, 2021, Norstar Industries reported net income of $990,000. At January 1, 2021, the company had
1,170,000 common shares outstanding. The following changes in the number of shares occurred during 2021:
Apr. 30 Sold 110,000 shares in a public offering.
May 24 Declared and distributed a 5% stock dividend.
June 1 Issued 126,000 shares as part of the consideration for the purchase of assets from a subsidiary.
Required:
Compute Norstar's earnings per share for the year ended December 31, 2021. (Enter your answers in thousands. Round "EPS"
answer to 2 decimal places. Do not round intermediate calculations.)
Answer is complete but not entirely correct.
Earnings per
Numerator
Denominator
Share
990 O
1,190
0.67 X](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1bc7a40b-dffa-4a62-bd66-b416eeb3fe46%2Fb475cb16-ec5c-4371-8ed0-5671ee90fa0a%2Flhc088_processed.png&w=3840&q=75)
Transcribed Image Text:Exercise 19-12 (Algo) EPS; shares issued; stock dividend [LO19-5, 19-6]
For the year ended December 31, 2021, Norstar Industries reported net income of $990,000. At January 1, 2021, the company had
1,170,000 common shares outstanding. The following changes in the number of shares occurred during 2021:
Apr. 30 Sold 110,000 shares in a public offering.
May 24 Declared and distributed a 5% stock dividend.
June 1 Issued 126,000 shares as part of the consideration for the purchase of assets from a subsidiary.
Required:
Compute Norstar's earnings per share for the year ended December 31, 2021. (Enter your answers in thousands. Round "EPS"
answer to 2 decimal places. Do not round intermediate calculations.)
Answer is complete but not entirely correct.
Earnings per
Numerator
Denominator
Share
990 O
1,190
0.67 X
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