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An analyst has gathered the following information about a company:  110,000 shares of common outstanding at the beginning of the year.  The company repurchases 20,000 of its own common shares on July 1.  Earnings are $300,000 for the year.  10,000 shares of existing 10 percent cumulative $100 par preferred outstanding that is not in arrears at the beginning or ending of the year.  The company also has $1 million in 10 percent callable bonds outstanding.  The company has declared a $0.50 dividend on the common. What is the company's diluted earnings per share?

An analyst has gathered the following information about a company:  110,000 shares of common outstanding at the beginning of the year.  The company repurchases 20,000 of its own common shares on July 1.  Earnings are $300,000 for the year.  10,000 shares of existing 10 percent cumulative $100 par preferred outstanding that is not in arrears at the beginning or ending of the year.  The company also has $1 million in 10 percent callable bonds outstanding.  The company has declared a $0.50 dividend on the common. What is the company's diluted earnings per share?

Excel Applications for Accounting Principles
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter12: Statement Of Stockholders’ Equity (stockeq)
Section: Chapter Questions
Problem 1R: Chen Corporation began 2012 with the following stockholders equity balances: The following selected...
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An analyst has gathered the following information about a company:
 110,000 shares of common outstanding at the beginning of the year.
 The company repurchases 20,000 of its own common shares on July 1.
 Earnings are $300,000 for the year.
 10,000 shares of existing 10 percent cumulative $100 par preferred outstanding that is not in arrears at the beginning or ending of the year.
 The company also has $1 million in 10 percent callable bonds outstanding.
 The company has declared a $0.50 dividend on the common.
What is the company's diluted earnings per share?

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