Sampson Corp. had 500,000 shares of common stock outstanding at the beginning of the year. The average market price was $20. • On April 1, Sampson issued 100,000 shares of $1,000 par value 10% preferred stock. • On July 1, Sampson issued 200,000 warrants to purchase 10 shares of common stock each at $22 per share. • On October 1, Sampson repurchased 60,000 of common stock as Treasury stock for $15 per share. What is the weighted average common shares outstanding Sampson should use to compute basic earnings per share (EPS) and what would the weighted average common shares outstanding have been f the Treasury stock hadn't been repurchased, respectively?
Sampson Corp. had 500,000 shares of common stock outstanding at the beginning of the year. The average market price was $20. • On April 1, Sampson issued 100,000 shares of $1,000 par value 10% preferred stock. • On July 1, Sampson issued 200,000 warrants to purchase 10 shares of common stock each at $22 per share. • On October 1, Sampson repurchased 60,000 of common stock as Treasury stock for $15 per share. What is the weighted average common shares outstanding Sampson should use to compute basic earnings per share (EPS) and what would the weighted average common shares outstanding have been f the Treasury stock hadn't been repurchased, respectively?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Sampson Corp. had 500,000 shares of common stock outstanding at the beginning of the year. The
average market price was $20.
• On April 1, Sampson issued 100,000 shares of $1,000 par value 10% preferred stock.
• On July 1, Sampson issued 200,000 warrants to purchase 10 shares of common stock each at $22
per share.
On October 1, Sampson repurchased 60,000 of common stock as Treasury stock for $15 per
share.
What is the weighted average common shares outstanding Sampson should use to compute basic
earnings per share (EPS) and what would the weighted average common shares outstanding have been
if the Treasury stock hadn't been repurchased, respectively?
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