On December 31, Year 1, a company had 200 million shares of common stock and 3 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. . On March 1, Year 2, the company purchased 24 million shares of its common stock as treasury stock • The company issued a 5% common stock dividend on July 1, Year 2. • Four million treasury shares were sold on October 1. • Net income for the year ended December 31, Year 2, was $150 million. Required: Calculate the company's earnings per share for the year ended December 31, Year 2. Note: Do not round intermediate calculations. Enter your answers in millions (l.e., 10,000,000 should be entered as 10). Numerator Denominator Earnings per Share
On December 31, Year 1, a company had 200 million shares of common stock and 3 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. . On March 1, Year 2, the company purchased 24 million shares of its common stock as treasury stock • The company issued a 5% common stock dividend on July 1, Year 2. • Four million treasury shares were sold on October 1. • Net income for the year ended December 31, Year 2, was $150 million. Required: Calculate the company's earnings per share for the year ended December 31, Year 2. Note: Do not round intermediate calculations. Enter your answers in millions (l.e., 10,000,000 should be entered as 10). Numerator Denominator Earnings per Share
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Subject: acounting
Transcribed Image Text:On December 31, Year 1, a company had 200 million shares of common stock and 3 million shares of 9%, $100 par value cumulative
preferred stock issued and outstanding.
• On March 1, Year 2, the company purchased 24 million shares of its common stock as treasury stock.
• The company issued a 5% common stock dividend on July 1, Year 2.
• Four million treasury shares were sold on October 1.
• Net income for the year ended December 31, Year 2, was $150 million.
Required:
Calculate the company's earnings per share for the year ended December 31, Year 2.
Note: Do not round intermediate calculations. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).
Numerator
Denominator
Earnings per Share
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