**Basic Earnings Per Share Calculation**Murray Company reports a net income of $851,000 for the year. It has no preferred stock, and its weighted-average common shares outstanding is 370,000 shares.Compute its basic earnings per share.**Table Explanation:**The table is used to compute Basic Earnings Per Share (EPS).- **Choose Numerator:** - The numerator is the net income, which is $851,000.- **Choose Denominator:** - The denominator is the weighted-average common shares outstanding, which is 370,000 shares.**Formulation:**The Basic EPS is calculated as follows:\[ \text{Basic EPS} = \frac{\text{Net Income}}{\text{Weighted-Average Shares Outstanding}} \]\[ \text{Basic EPS} = \frac{851,000}{370,000} \]The calculation will provide the Basic EPS per share.

Earnings per share shown the per share amount earned by each common stockholders from the profits of the entity after paying off the preferred dividend. It is determined in order to know the return of those shareholders.Basic Earnings Per Share Choose Numerator / Choose Denominator = Basic EPS Net income - Dividend / Weighted average common shares outstanding = Basic EPS $ 851,000 - $0 / 370,000 = $ 2.3 Per Share

Business

Accounting

Murray Company reports net income of $851,000 for the year. It has no preferred stock, and its weighted-average common shares outstanding is 370,000 shares. Compute its basic earnings per share. Choose Numerator: Basic Earnings Per Share T 1 Choose Denominator: = Basic EPS Basic EPS per share

Murray Company reports net income of $851,000 for the year. It has no preferred stock, and its weighted-average common shares outstanding is 370,000 shares. Compute its basic earnings per share. Choose Numerator: Basic Earnings Per Share T 1 Choose Denominator: = Basic EPS Basic EPS per share

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Acme Company reports earnings per share of $1.20, a price - earnings ratio of 12.50, and a dividend yield ratio of 12 %. Acme has an average of 50,000 shares of common shares outstanding during the year. What is the amount of dividends per share? Group of answer choices $2.40 $2.10 $1.80 $2.70
At the market close on May 12 of a recent year, McDonald’s Corporation had a closing stock price of $129.51. In addition, McDonald’s Corporation had a dividend per share of $3.56 during the previous year.Determine McDonald’s Corporation’s dividend yield. Round to one decimal place.
Murray Company reports net income of $992,000 for the year. It has no preferred stock, and its weighted-average common shares outstanding is 320,000 shares. Compute its basic earnings per share. Choose Numerator: Basic Earnings Per Share 1 1 1 Choose Denominator: = Basic EPS Basic EPS per share
Murray Company reports net income of $855,500 for the year. It has no preferred stock, and its weighted-average common shares outstanding is 290,000 shares. Compute its basic earnings per share. Choose Numerator: 1 Basic Earnings Per Share Choose Denominator: Basic EPS Basic EPS 0 per share
1.
Barbur, Incorporated reported net income of $12.5625 million. During the year the average number of common shares outstanding was 3.35 million. The price of a share of common stock at the end of the year was $5. There were 540,000 shares of preferred stock outstanding on average and no dividends were declared and the preferred stock is noncumulative. The EPS is: Multiple Choice O C O $0.27. $3.51. $3.61. $3.75.
North Company has a common stock price of $72. The latest reported earnings per share were $4.80 and dividends per share were $1.60. The return on equity (ROE) is 8%. The cost of equity is closest to:
Windborn Company has 30,000 shares of cumulative preferred 3% stock, $100 par and 50,000 shares of $20 par common stock. The following amounts were distributed as dividends: 20Y1 $135,000 20Y2 72,000 20Y3 270,000 Determine the dividends per share for preferred and common stock for each year. Round all answers to two decimal places. If an answer is zero, enter '0'. Preferred Stock(dividends per share) Common Stock(dividends per share) 20Y1 $ $ 20Y2 $ $ 20Y3
17
Kawther Inc. has net income of $200,000, average equity/ordinary shares outstanding of 40,000, and preferred dividends for the period of $20,000. What is Kawther’s earnings per share?
Urmilaben
4. The company earned net income of $475,617 and had 1,000 shares of $50 par 10% preferred shares of stock outstanding. Preferred stock dividends were paid. If the weighted average number of common shares was 78,806, state the earnings per share in decimal form rounded to the nearest two decimals. (For example, if the EPS was $1.16, then write 1.16 as your answer.)