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The ABC Company’s profit for the year ended December 31 was P 2,883,400. During the year, ABC declared and paid P 330,000 in cash dividends on non-cumulative non-convertible preference shares and P 552,000 in cash dividends on ordinary share. At December 31, 360,000 of ordinary shares were outstanding, 300,000 of which had been outstanding since the start of the year and the remainder of which were issued on May 1. There were no other ordinary share transactions during the year, and there is no potential dilution of earnings per share. What should be the year’s basic earnings per share of ABC? Group of answer choices 9.09 7.51 6.60 8.18

The ABC Company’s profit for the year ended December 31 was P 2,883,400. During the year, ABC declared and paid P 330,000 in cash dividends on non-cumulative non-convertible preference shares and P 552,000 in cash dividends on ordinary share. At December 31, 360,000 of ordinary shares were outstanding, 300,000 of which had been outstanding since the start of the year and the remainder of which were issued on May 1. There were no other ordinary share transactions during the year, and there is no potential dilution of earnings per share. What should be the year’s basic earnings per share of ABC? Group of answer choices 9.09 7.51 6.60 8.18

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 23E
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The ABC Company’s profit for the year ended December 31 was P 2,883,400. During the year, ABC declared and paid P 330,000 in cash dividends on non-cumulative non-convertible preference shares and P 552,000 in cash dividends on ordinary share. At December 31, 360,000 of ordinary shares were outstanding, 300,000 of which had been outstanding since the start of the year and the remainder of which were issued on May 1. There were no other ordinary share transactions during the year, and there is no potential dilution of earnings per share. What should be the year’s basic earnings per share of ABC?

Group of answer choices

9.09

7.51

6.60

8.18

 

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