On December 31, 2020, Dow Steel Corporation had 770,000 shares of common stock and 47,000 shares of 9%, noncumulative, nonconvertible preferred stock issued and outstanding. Dow issued a 5% common stock dividend on May 15 and paid cash dividends of $570,000 and $86,000 to common and preferred shareholders, respectively, on December 15, 2021. On February 28, 2021, Dow sold 68,000 common shares. In keeping with its long-term share repurchase plan, 4,000 shares were retired on July 1. Dow's net income for the year ended December 31, 2021, was $2,950,000. 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.) Numerator 1 Denominator = = S Earnings per share 3.31
On December 31, 2020, Dow Steel Corporation had 770,000 shares of common stock and 47,000 shares of 9%, noncumulative, nonconvertible preferred stock issued and outstanding. Dow issued a 5% common stock dividend on May 15 and paid cash dividends of $570,000 and $86,000 to common and preferred shareholders, respectively, on December 15, 2021. On February 28, 2021, Dow sold 68,000 common shares. In keeping with its long-term share repurchase plan, 4,000 shares were retired on July 1. Dow's net income for the year ended December 31, 2021, was $2,950,000. 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.) Numerator 1 Denominator = = S Earnings per share 3.31
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 8P
Related questions
Question
![On December 31, 2020, Dow Steel Corporation had 770,000 shares of common stock and
47,000 shares of 9%, noncumulative, nonconvertible preferred stock issued and
outstanding. Dow issued a 5% common stock dividend on May 15 and paid cash dividends
of $570,000 and $86,000 to common and preferred shareholders, respectively, on
December 15, 2021.
On February 28, 2021, Dow sold 68,000 common shares. In keeping with its long-term
share repurchase plan, 4,000 shares were retired on July 1. Dow's net income for the year
ended December 31, 2021, was $2,950,000. 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.)
Numerator
1
Denominator
=
=
S
Earnings per share
3.31](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F67228535-077e-4cb3-8159-03b58d45c3a5%2Fbfc142f0-8052-4620-bb40-0b70a9ec90bc%2Fybkj6ai_processed.jpeg&w=3840&q=75)
Transcribed Image Text:On December 31, 2020, Dow Steel Corporation had 770,000 shares of common stock and
47,000 shares of 9%, noncumulative, nonconvertible preferred stock issued and
outstanding. Dow issued a 5% common stock dividend on May 15 and paid cash dividends
of $570,000 and $86,000 to common and preferred shareholders, respectively, on
December 15, 2021.
On February 28, 2021, Dow sold 68,000 common shares. In keeping with its long-term
share repurchase plan, 4,000 shares were retired on July 1. Dow's net income for the year
ended December 31, 2021, was $2,950,000. 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.)
Numerator
1
Denominator
=
=
S
Earnings per share
3.31
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