The Sailor Jerry Company had 50,000 shares of common stock outstanding on January 1st. On April1st, the company issued 20,000 shares of common stock. The company also has stock optionsoutstanding that can be exercised for 5,000 common shares at an exercise price of $12 per share. Theoptions were outstanding for the entire year but none were exercised. The end-of-year market price ofthe common stock was $13 per share while the average price for the year was $15 per share. Thecompany reported net income of $266,500 for the year. Basic earnings per share for the year is closestto: $4.10 $3.86 $3.81 $4.04
The Sailor Jerry Company had 50,000 shares of common stock outstanding on January 1st. On April1st, the company issued 20,000 shares of common stock. The company also has stock optionsoutstanding that can be exercised for 5,000 common shares at an exercise price of $12 per share. Theoptions were outstanding for the entire year but none were exercised. The end-of-year market price ofthe common stock was $13 per share while the average price for the year was $15 per share. Thecompany reported net income of $266,500 for the year. Basic earnings per share for the year is closestto: $4.10 $3.86 $3.81 $4.04
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%
The Sailor Jerry Company had 50,000 shares of common stock outstanding on January 1st. On April
1st, the company issued 20,000 shares of common stock. The company also has stock options
outstanding that can be exercised for 5,000 common shares at an exercise price of $12 per share. The
options were outstanding for the entire year but none were exercised. The end-of-year market price of
the common stock was $13 per share while the average price for the year was $15 per share. The
company reported net income of $266,500 for the year. Basic earnings per share for the year is closest
to:
$4.10
$3.86
$3.81
$4.04
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