Earnings per share: Earnings per share represent the amount of income earned per share of outstanding common stock in a period. This ratio is used for analyzing the profitability of company’s stockholders’. The following formula can be used to calculate earnings per share: Earnings per share = Net income ( loss ) – Preferred dividends Average number of common shares outstanding The earnings per share of Incorporation C for Year 1-3.

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Answer 1

Question

Chapter 12, Problem 12.3ADM

(a)

To determine

Earnings per share:

Earnings per share represent the amount of income earned per share of outstanding common stock in a period. This ratio is used for analyzing the profitability of company’s stockholders’.

The following formula can be used to calculate earnings per share:

Earnings per share = Net income(loss) – Preferred dividendsAverage number of common shares outstanding

The earnings per share of Incorporation C for Year 1-3.

(b)

To determine

To interpret: The trend in earnings per share using horizontal analysis for 3 years in terms of change in earnings and average shares outstanding.

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Answer 2

Question

Chapter 12, Problem 12.3ADM

(a)

To determine

Earnings per share:

Earnings per share represent the amount of income earned per share of outstanding common stock in a period. This ratio is used for analyzing the profitability of company’s stockholders’.

The following formula can be used to calculate earnings per share:

Earnings per share = Net income(loss) – Preferred dividendsAverage number of common shares outstanding

The earnings per share of Incorporation C for Year 1-3.

(b)

To determine

To interpret: The trend in earnings per share using horizontal analysis for 3 years in terms of change in earnings and average shares outstanding.

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Answer 3

Question

Chapter 12, Problem 12.3ADM

(a)

To determine

Earnings per share:

Earnings per share represent the amount of income earned per share of outstanding common stock in a period. This ratio is used for analyzing the profitability of company’s stockholders’.

The following formula can be used to calculate earnings per share:

Earnings per share = Net income(loss) – Preferred dividendsAverage number of common shares outstanding

The earnings per share of Incorporation C for Year 1-3.

(b)

To determine

To interpret: The trend in earnings per share using horizontal analysis for 3 years in terms of change in earnings and average shares outstanding.

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Answer 4

Question

Chapter 12, Problem 12.3ADM

(a)

To determine

Earnings per share:

Earnings per share represent the amount of income earned per share of outstanding common stock in a period. This ratio is used for analyzing the profitability of company’s stockholders’.

The following formula can be used to calculate earnings per share:

Earnings per share = Net income(loss) – Preferred dividendsAverage number of common shares outstanding

The earnings per share of Incorporation C for Year 1-3.

(b)

To determine

To interpret: The trend in earnings per share using horizontal analysis for 3 years in terms of change in earnings and average shares outstanding.

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Answer 5

Chapter 12, Problem 12.3ADM

(a)

To determine

Earnings per share:

Earnings per share represent the amount of income earned per share of outstanding common stock in a period. This ratio is used for analyzing the profitability of company’s stockholders’.

The following formula can be used to calculate earnings per share:

Earnings per share = Net income(loss) – Preferred dividendsAverage number of common shares outstanding

The earnings per share of Incorporation C for Year 1-3.

(b)

To determine

To interpret: The trend in earnings per share using horizontal analysis for 3 years in terms of change in earnings and average shares outstanding.

Answer 6

Chapter 12, Problem 12.3ADM

(a)

To determine

Earnings per share:

Earnings per share represent the amount of income earned per share of outstanding common stock in a period. This ratio is used for analyzing the profitability of company’s stockholders’.

The following formula can be used to calculate earnings per share:

Earnings per share = Net income(loss) – Preferred dividendsAverage number of common shares outstanding

The earnings per share of Incorporation C for Year 1-3.

Answer 7

Chapter 12, Problem 12.3ADM

(a)

To determine

Earnings per share:

Earnings per share represent the amount of income earned per share of outstanding common stock in a period. This ratio is used for analyzing the profitability of company’s stockholders’.

The following formula can be used to calculate earnings per share:

Earnings per share = Net income(loss) – Preferred dividendsAverage number of common shares outstanding

The earnings per share of Incorporation C for Year 1-3.

Answer 8

(b)

To determine

To interpret: The trend in earnings per share using horizontal analysis for 3 years in terms of change in earnings and average shares outstanding.

Answer 9

(b)

To determine

To interpret: The trend in earnings per share using horizontal analysis for 3 years in terms of change in earnings and average shares outstanding.

Answer 10

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Answer 11

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Answer 12

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Answer 13

Ch. 12 - Of two corporations organized at approximately the...Ch. 12 - A stockbroker advises a client to buy preferred...Ch. 12 - A corporation with both preferred stock and common...Ch. 12 - An owner of 2,500 shares of Simmons Company common...Ch. 12 - Prob. 5DQ Ch. 12 - Prob. 6DQ Ch. 12 - A corporation reacquires 60,000 shares of its own...Ch. 12 - The treasury stock in Discussion Question 7 is...Ch. 12 - Prob. 9DQ Ch. 12 - Prob. 10DQ

Solution Summary: The author calculates the earnings per share of Incorporation C for Year 3, Year 2, and Year 1.

To interpret: The trend in earnings per share using horizontal analysis for 3 years in terms of change in earnings and average shares outstanding.

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Chapter 12 Solutions