Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. calculating eps: simple capital structure on janu

Calculating EPS: Simple Capital Structure On January 1, Americana Inc. had 210,000...

70.2K

Verified Solution

Question

Accounting

Calculating EPS: Simple Capital Structure
On January 1, Americana Inc. had 210,000 shares of common stock issued and outstanding. Americana Inc. issued a 40% stock dividend on July 1. On October 1, the
company purchased 24,000 shares of its common stock for the treasury, and declared a 2-for-1 stock split on December 31. American also had 12,000 shares of 5%,
$20 par value cumulative preferred stock outstanding. No dividends were declared on either the preferred or the common stock during the prior year or current year.
Net income for the year was $1,100,000.
Required
Note: In the following calculations, enter the earnings per share amounts in dollars and cents, rounded to the nearest penny.
a. Compute the required EPS amount.
b. Compute the required EPS amount assuming instead that Americana Inc. declared and paid the current year preferred dividend and one year of dividends in
arrears in December.
c. Compute the required EPS amount assuming instead that the preferred stock is noncumulative.
image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Finance
1.2K views

Pat Radigan is planning to buy a Toyota hybrid for $18,749 with $1,500 down and plans...

Physics
1.2K views

on external magnetic 4 No field lines exists inside the magnet A magnetic needle lying...

Geometry
1.2K views

Find the mean median mode and standard deviation for the given frequency distribution Score x...

Statistics
1.2K views

78 The mean number of sick days an employee takes per year is believed to...

Calculus
1.2K views

Solve the equation sin 20 given that 0 0 2m Select the correct answer below...

Calculus
1.2K views

a Find the inverse of the function below on the given interval and write it...

Accounting
1.2K views

Question 4 10 pts Your Company earned $600,000 of revenue on account and $100,000 of...

Accounting
1.2K views

: Cul de los siguientes tipos de anlisis ocurre en tiempo real? Desarrollado Emergente...

Accounting
1.2K views

Many developed countries often accuse developing countries such as Malaysia of neglecting environmental aspects in...

Accounting
1.2K views

After Sunset Food Wholesalers adds a markup of $15.40 to a case of tomato sauce,...

Accounting
1.2K views

Garden Sales, Incorporated, sells garden supplies. Management is planning its cash needs for the second...

Finance
1.2K views

We know that during the last 10 years, the average historical return on a market...