**Knowledge Check 01**Raguel Corporation reported net income of $101,000 during the current calendar year. As of January 1, the company had 200,000 shares of common stock outstanding and 1,000 shares of 10% preferred stock with a par value of $10 per share. The preferred stock is nonconvertible and cumulative. The board of directors did not declare the preferred dividend of $1,000 for the current year. What is the company’s basic EPS? (Round your answer to 2 decimal places.)**Basic EPS**: [Input box for answer]---**Video Section:**- There is a video player interface displayed at the top with controls for play, pause, and volume adjustments.**Note:** There are no graphs or diagrams present in the image.

Basic EPS = (Net income - Preferred dividends) / Weighted average number of common shares outstandingBasic EPS = (Net income - Preferred dividends) / Weighted average number of common shares outstanding = ($101,000 - $1,000) / 200,000 = $0.50Answer is .50

Answered: Knowledge Check 01 Raguel Corporation…

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

Problem 1PS

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Stock Dividends Penguin Company has the following information regarding its common stock: $24 par, with 300,000 shares authorized, 132,000 shares issued, and 130,600 shares outstanding. On August 22, Penguin declared and paid a 15% stock dividend when the market price of the common stock was $28 per share. Required: 1. Prepare the journal entries to record declaration and payment of this stock dividend. If an amount box does not require an entry, leave it blank. Aug. 22 Dividends Declared Common Stock Additional Paid-In Capital-Common Stock Feedback 548,520 ✔ Aug. 22 Dividends Declared Common Stock 470,160 Check My Work 1. Small stock dividends are capitalized using the stock's market value, while large stock dividends are capitalized at the stock's par value. 470,160 78,360 2. Prepare the journal entries to record declaration and payment assuming it was a 30% stock dividend. If an amount box does not require an entry, leave it blank.
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