ABC Co. had 120,000 shares of common stock outstanding at January 1. On April 1,...
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Accounting
ABC Co. had 120,000 shares of common stock outstanding at January 1. On April 1, it issued 40,000 additional shares of common stock. Outstanding all years were 10,000 shares of nonconvertible preferred stock on which a dividend of $5 per share was declared during the year. Net income for the year was $480,000. What is the EPS for the year? The answer is $2.87. Why is that?
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