On December 31, 2020, Dow Steel Corporation had 640,000 shares of common stock and 34,000 shares of 8%, noncumulative, nonconvertible preferred stock issued and outstanding. Dow issued a 4% common stock dividend on May 15 and paid cash dividends of $440,000 and $73,000 to common and preferred shareholders, respectively, on December 15, 2021. On February 28, 2021, Dow sold 57,000 common shares. In keeping with its long-term share repurchase plan, 6, 000 shares were retired on July 1. Dow’s net income for the year ended December 31, 2021, was $2,300,000. The income tax rate is 25%. Required: Compute Dow’s earnings per share for the year ended December 31, 2021. (Do not round intermediate calculations. Enter your answers in thousands. Round “Earnings per share” answer to 2 decimal places.)
On December 31, 2020, Dow Steel Corporation had 640,000 shares of common stock and 34,000 shares of 8%, noncumulative, nonconvertible
On February 28, 2021, Dow sold 57,000 common shares. In keeping with its long-term share repurchase plan, 6, 000 shares were retired on July 1. Dow’s net income for the year ended December 31, 2021, was $2,300,000. The income tax rate is 25%.
Required:
Compute Dow’s earnings per share for the year ended December 31, 2021. (Do not round intermediate calculations. Enter your answers in thousands. Round “Earnings per share” answer to 2 decimal places.)
Number / Denominator = Earnings per share
________ / _____________ = _______________
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
