Calculation of Basic Earnings Per Share: Example No.2 Octagon Plc generated profit net of taxes of $2,500,000 for the twelve month period ending December 31, 2015. The firm owes ordinary dividends of $400,000 and cumulative preference dividends of $300,000 during the period. The company had 4,000,000 common shares outstanding at the beginning of the year. In addition, it sold 200,000 shares on June 1 2015 and 400,000 shares on September 1 2015. It also issued 500,000 shares on August 1 to the owners of a newly- acquired subsidiary. Finally, it bought back 60,000 shares on December 1, 2015. Required: a. Calculate the basic earnings per share for Octagon PLC.?
Calculation of Basic Earnings Per Share: Example No.2 Octagon Plc generated profit net of taxes of $2,500,000 for the twelve month period ending December 31, 2015. The firm owes ordinary dividends of $400,000 and cumulative preference dividends of $300,000 during the period. The company had 4,000,000 common shares outstanding at the beginning of the year. In addition, it sold 200,000 shares on June 1 2015 and 400,000 shares on September 1 2015. It also issued 500,000 shares on August 1 to the owners of a newly- acquired subsidiary. Finally, it bought back 60,000 shares on December 1, 2015. Required: a. Calculate the basic earnings per share for Octagon PLC.?
Financial & Managerial Accounting
13th Edition
ISBN:9781285866307
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter11: Corporations: Organization, Stock Transactions, And Dividends
Section: Chapter Questions
Problem 11.8BPE: Earnings per share Financial statement data for the years ended December 31 for Black Bull Inc....
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Calculation of Basic Earnings Per Share: Example No.2
Octagon Plc generated profit net of taxes of $2,500,000 for the twelve month period ending
December 31, 2015. The firm owes ordinary dividends of $400,000 and cumulative preference
dividends of $300,000 during the period. The company had 4,000,000 common shares outstanding
at the beginning of the year. In addition, it sold 200,000 shares on June 1 2015 and 400,000 shares
on September 1 2015. It also issued 500,000 shares on August 1 to the owners of a newly-
acquired subsidiary. Finally, it bought back 60,000 shares on December 1, 2015.
Required:
Calculate the basic earnings per share for Octagon PLC.?
EEEEE. SISE
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