has no preferred stock outstanding. The company had 40,000 shares of common stock outstanding on January 1, 2016 and issued 12,000 additional shares on May 1. If Gala’s net income was $200,000, the company should report earnings per share of (to the nearest cent):

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Gala, Inc. has no preferred stock outstanding. The company had 40,000 shares of common stock outstanding on January 1, 2016 and issued 12,000 additional shares on May 1.

If Gala’s net income was $200,000, the company should report earnings per share of (to the nearest cent):
 

Question 13 options:

 

A) 

$4.17
 

B) 

$3.85
 

C) 

$5.24
 

D) 

$4.44
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