On December 31, 2023, Dow Steel Corporation had 730,000 shares of common stock and 43,000 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 $530,000 and $82,000 to common and preferred shareholders, respectively, on December 15, 2024. . On February 28, 2024, Dow sold 60,000 common shares. • In keeping with its long-term share repurchase plan, 2,000 shares were retired on July 1. • Dow's net income for the year ended December 31, 2024, was $2,750,000. The income tax rate is 25%. Required: Compute Dow's earnings per share for the year ended December 31, 2024. Note: Do not round intermediate calculations. Except for per share amounts, enter your answers in thousands (i.e., 10,000 should be entered as 10). Round "Earnings per share" answer to 2 decimal places. Numerator Denominator Earnings per share
On December 31, 2023, Dow Steel Corporation had 730,000 shares of common stock and 43,000 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 $530,000 and $82,000 to common and preferred shareholders, respectively, on December 15, 2024. . On February 28, 2024, Dow sold 60,000 common shares. • In keeping with its long-term share repurchase plan, 2,000 shares were retired on July 1. • Dow's net income for the year ended December 31, 2024, was $2,750,000. The income tax rate is 25%. Required: Compute Dow's earnings per share for the year ended December 31, 2024. Note: Do not round intermediate calculations. Except for per share amounts, enter your answers in thousands (i.e., 10,000 should be entered as 10). Round "Earnings per share" answer to 2 decimal places. Numerator Denominator Earnings per share
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 10MC
Related questions
Question
100%
![On December 31, 2023, Dow Steel Corporation had 730,000 shares of common stock and 43,000 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 $530,000 and $82,000 to common and
preferred shareholders, respectively, on December 15, 2024.
. On February 28, 2024, Dow sold 60,000 common shares.
• In keeping with its long-term share repurchase plan, 2,000 shares were retired on July 1.
• Dow's net income for the year ended December 31, 2024, was $2,750,000. The income tax rate is 25%.
Required:
Compute Dow's earnings per share for the year ended December 31, 2024.
Note: Do not round intermediate calculations. Except for per share amounts, enter your answers in thousands (i.e., 10,000 should
be entered as 10). Round "Earnings per share" answer to 2 decimal places.
Numerator
Denominator
Earnings per share](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5042eef7-a4bf-4a90-aabd-cc56a5b00d3f%2Fc33d1255-ecd9-4d6b-a890-ae6e9d363f1c%2F3ayjlb9_processed.png&w=3840&q=75)
Transcribed Image Text:On December 31, 2023, Dow Steel Corporation had 730,000 shares of common stock and 43,000 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 $530,000 and $82,000 to common and
preferred shareholders, respectively, on December 15, 2024.
. On February 28, 2024, Dow sold 60,000 common shares.
• In keeping with its long-term share repurchase plan, 2,000 shares were retired on July 1.
• Dow's net income for the year ended December 31, 2024, was $2,750,000. The income tax rate is 25%.
Required:
Compute Dow's earnings per share for the year ended December 31, 2024.
Note: Do not round intermediate calculations. Except for per share amounts, enter your answers in thousands (i.e., 10,000 should
be entered as 10). Round "Earnings per share" answer to 2 decimal places.
Numerator
Denominator
Earnings per share
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