Earnings per share (EPS) : The amount of net income available to each shareholder per common share outstanding is referred to as earnings per share (EPS). Use the following formula to compute EPS: EPS = Net income – Preferred dividends Weighted average common shares outstanding To compute : (a) EPS of Company CG for 2016 and 2017.

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Answer 1

Question

Chapter 2, Problem 2.7E

(a)

To determine

Earnings per share (EPS): The amount of net income available to each shareholder per common share outstanding is referred to as earnings per share (EPS).

Use the following formula to compute EPS:

EPS = Net income – Preferred dividendsWeighted average common shares outstanding

To compute: (a) EPS of Company CG for 2016 and 2017.

(b)

To determine

To compute: (b) comment on the changes.

(c)

To determine

To compute: (c) finds how the answer computed in part (a) changes if dividends were paid.

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Answer 2

Question

Chapter 2, Problem 2.7E

(a)

To determine

Earnings per share (EPS): The amount of net income available to each shareholder per common share outstanding is referred to as earnings per share (EPS).

Use the following formula to compute EPS:

EPS = Net income – Preferred dividendsWeighted average common shares outstanding

To compute: (a) EPS of Company CG for 2016 and 2017.

(b)

To determine

To compute: (b) comment on the changes.

(c)

To determine

To compute: (c) finds how the answer computed in part (a) changes if dividends were paid.

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Answer 3

Question

Chapter 2, Problem 2.7E

(a)

To determine

Earnings per share (EPS): The amount of net income available to each shareholder per common share outstanding is referred to as earnings per share (EPS).

Use the following formula to compute EPS:

EPS = Net income – Preferred dividendsWeighted average common shares outstanding

To compute: (a) EPS of Company CG for 2016 and 2017.

(b)

To determine

To compute: (b) comment on the changes.

(c)

To determine

To compute: (c) finds how the answer computed in part (a) changes if dividends were paid.

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Answer 4

Question

Chapter 2, Problem 2.7E

(a)

To determine

Earnings per share (EPS): The amount of net income available to each shareholder per common share outstanding is referred to as earnings per share (EPS).

Use the following formula to compute EPS:

EPS = Net income – Preferred dividendsWeighted average common shares outstanding

To compute: (a) EPS of Company CG for 2016 and 2017.

(b)

To determine

To compute: (b) comment on the changes.

(c)

To determine

To compute: (c) finds how the answer computed in part (a) changes if dividends were paid.

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Answer 5

Chapter 2, Problem 2.7E

(a)

To determine

Earnings per share (EPS): The amount of net income available to each shareholder per common share outstanding is referred to as earnings per share (EPS).

Use the following formula to compute EPS:

EPS = Net income – Preferred dividendsWeighted average common shares outstanding

To compute: (a) EPS of Company CG for 2016 and 2017.

(b)

To determine

To compute: (b) comment on the changes.

(c)

To determine

To compute: (c) finds how the answer computed in part (a) changes if dividends were paid.

Answer 6

Chapter 2, Problem 2.7E

(a)

To determine

Earnings per share (EPS): The amount of net income available to each shareholder per common share outstanding is referred to as earnings per share (EPS).

Use the following formula to compute EPS:

EPS = Net income – Preferred dividendsWeighted average common shares outstanding

To compute: (a) EPS of Company CG for 2016 and 2017.

Answer 7

Chapter 2, Problem 2.7E

(a)

To determine

Earnings per share (EPS): The amount of net income available to each shareholder per common share outstanding is referred to as earnings per share (EPS).

Use the following formula to compute EPS:

EPS = Net income – Preferred dividendsWeighted average common shares outstanding

To compute: (a) EPS of Company CG for 2016 and 2017.

Answer 8

(b)

To determine

To compute: (b) comment on the changes.

Answer 9

(b)

To determine

To compute: (b) comment on the changes.

Answer 10

(c)

To determine

To compute: (c) finds how the answer computed in part (a) changes if dividends were paid.

Answer 11

(c)

To determine

To compute: (c) finds how the answer computed in part (a) changes if dividends were paid.

Answer 12

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Answer 13

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Answer 15

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Solution Summary: The author explains how to compute earnings per share (EPS) of Company CG for 2016 and 2017, if net income is 54,587,000, preferred dividends are 0, and common shares outstanding at the beginning of 2016 are

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To compute: (b) comment on the changes.

To compute: (c) finds how the answer computed in part (a) changes if dividends were paid.

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