On January 1, 2020, Teal Industries had stock outstanding as follows. 8% Noncumulative preferred stock, $100 par value, issued and outstanding 231,000 shares $23,100,000 Common stock, $1 par value, issued and outstanding 633,000 shares 633,000 To acquire the net assets of three smaller companies, Teal issued an additional 600,000 common shares. The acquisitions took place as follows. Date of Acquisition Shares Issued MicroBio February 1, 2020 192,000 BioTech June 1, 2020 78,000 SuperBio November 1, 2020 330,000 On December 31, 2020, Teal reported net income of $10,520,000 before taxes. No dividends on the common or preferred stock were declared during 2020. Assuming a 40% tax rate, compute the earnings per share data that should appear on the financial statements of Teal Industries as of December 31, 2020. (Round answer to 2 decimal places, e.g. 2.55.) Earnings per share $enter the earnings per share in dollar rounded to 2 decimal places
On January 1, 2020, Teal Industries had stock outstanding as follows. 8% Noncumulative preferred stock, $100 par value, issued and outstanding 231,000 shares $23,100,000 Common stock, $1 par value, issued and outstanding 633,000 shares 633,000 To acquire the net assets of three smaller companies, Teal issued an additional 600,000 common shares. The acquisitions took place as follows. Date of Acquisition Shares Issued MicroBio February 1, 2020 192,000 BioTech June 1, 2020 78,000 SuperBio November 1, 2020 330,000 On December 31, 2020, Teal reported net income of $10,520,000 before taxes. No dividends on the common or preferred stock were declared during 2020. Assuming a 40% tax rate, compute the earnings per share data that should appear on the financial statements of Teal Industries as of December 31, 2020. (Round answer to 2 decimal places, e.g. 2.55.) Earnings per share $enter the earnings per share in dollar rounded to 2 decimal places
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
On January 1, 2020, Teal Industries had stock outstanding as follows.
To acquire the net assets of three smaller companies, Teal issued an additional 600,000 common shares. The acquisitions took place as follows.
On December 31, 2020, Teal reported net income of $10,520,000 before taxes. No dividends on the common or preferred stock were declared during 2020.
Assuming a 40% tax rate, compute the earnings per share data that should appear on the financial statements of Teal Industries as of December 31, 2020. (Round answer to 2 decimal places, e.g. 2.55.)
| 8% Noncumulative |
$23,100,000 | |
| Common stock, $1 par value, issued and outstanding 633,000 shares | 633,000 |
To acquire the net assets of three smaller companies, Teal issued an additional 600,000 common shares. The acquisitions took place as follows.
|
Date of Acquisition
|
Shares Issued
|
|
|---|---|---|
|
MicroBio February 1, 2020
|
192,000 | |
|
BioTech June 1, 2020
|
78,000 | |
|
SuperBio November 1, 2020
|
330,000 |
On December 31, 2020, Teal reported net income of $10,520,000 before taxes. No dividends on the common or preferred stock were declared during 2020.
Assuming a 40% tax rate, compute the earnings per share data that should appear on the financial statements of Teal Industries as of December 31, 2020. (Round answer to 2 decimal places, e.g. 2.55.)
|
Earnings per share
|
$enter the earnings per share in dollar rounded to 2 decimal places
|
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