On December 31, 2020, Dow Steel Corporation had 710,000 shares of common stock and 41,000 shares of 7%, noncumulative,nonconvertible preferred stock issued and outstanding. Dow issued a 4% common stock dividend on May 15 and paid cash dividendsof $510,000 and $80,000 to common and preferred shareholders, respectively, on December 15, 2021.On February 28, 2021, Dow sold 63,000 common shares. In keeping with its long-term share repurchase plan, 4,000 shares wereretired on July 1. Dow's net income for the year ended December 31, 2021, was $2,650,000. 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 youranswers in thousands. Round "Earnings per share" answer to 2 decimal places.)NumeratorDenominatorEarnings per share

Earnings per share = Net income available to Equity shareholders/weighted average number of shares

Answered: On December 31, 2020, Dow Steel…

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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On January 1, 2025, Wildhorse Corporation had 380000 shares of its $2 par value common stock outstanding. On March 1, Wildhorse sold an additional 760000 shares on the open market at $20 per share. Wildhorse issued a 20% stock dividend on May 1. On August 1, Wildhorse purchased 422000 shares and immediately retired the stock. On November 1, 603000 shares were sold for $25 per share. What is the weighted-average number of shares outstanding for 2025? O 517620 O 1140667 O 718620 O 1549000
On December 31, 2023, Dow Steel Corporation had 640,000 shares of common stock and 304,000 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, 2024. • On February 28, 2024, 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, 2024, was $2,300,000. • The income tax rate is 25%. Also, as a part of a 2023 agreement for the acquisition of Merrill Cable Company, another 27,000 shares (already adjusted for the stock dividend) are to be issued to former Merrill shareholders on December 31, 2025, if Merrill's 2025 net income is at least $540,000. ● In 2024, Merrill's net income was $670,000. As part of an incentive compensation plan, Dow granted incentive stock options to division…
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