On January 1, 2024, Jaewoo Industries had outstanding 560,000 common shares ($1 par) that originally sold for $20 per share, and 4,000 shares of 10% cumulative preferred stock ($100 par), convertible Into 40,000 common shares. • On October 1, 2024, Jaewoo sold and Issued an additional 16,000 shares of common stock at $32. • At December 31, 2024, there were 20,000 Incentive stock options outstanding. Issued in 2023, and exercisable after one year for 20,000 shares of common stock at an exercise price of $40. • The market price of the common stock at year-end was $58. During the year, the price of the common shares had averaged $50. • Net Income was $700,000. The tax rate for the year was 25%.
On January 1, 2024, Jaewoo Industries had outstanding 560,000 common shares ($1 par) that originally sold for $20 per share, and 4,000 shares of 10% cumulative preferred stock ($100 par), convertible Into 40,000 common shares. • On October 1, 2024, Jaewoo sold and Issued an additional 16,000 shares of common stock at $32. • At December 31, 2024, there were 20,000 Incentive stock options outstanding. Issued in 2023, and exercisable after one year for 20,000 shares of common stock at an exercise price of $40. • The market price of the common stock at year-end was $58. During the year, the price of the common shares had averaged $50. • Net Income was $700,000. The tax rate for the year was 25%.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On January 1, 2024, Jaewoo Industries had outstanding 560,000 common shares ($1 par) that originally sold for $20 per share, and
4,000 shares of 10% cumulative preferred stock ($100 par), convertible Into 40,000 common shares.
• On October 1, 2024, Jaewoo sold and issued an additional 16,000 shares of common stock at $32.
• At December 31, 2024, there were 20,000 Incentive stock options outstanding, Issued in 2023, and exercisable after one year
for 20,000 shares of common stock at an exercise price of $40.
• The market price of the common stock at year-end was $58.
• During the year, the price of the common shares had averaged $50.
• Net Income was $700,000. The tax rate for the year was 25%
Required:
Compute basic and diluted EPS for the year ended December 31, 2024.
Note: Do not round intermediate calculations. Except for per share amounts, enter your answers in thousands (1.e., 10,000 should
be entered as 10). Round "Earnings per share" answer to 2 decimal places.
Basic
Diluted
Numerator
Denominator
Earnings per share
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