The following table is extracted from the income statement of Al shams Private Ltd. The company is having 10,000 common stocks, long term debt interest is OMR 1,500 and Preferred stock dividend is OMR 3400. Answer the following question after analyzing the given table YEAR 1 YEAR 2 Earnings before interest and taxes (EBIT) 16,000 44,000 Less: Interest 5,000 ? Net profit before tax 11,000 ? Less: Tax(0.40) 4,400 ? Net profit after tax 6,600 ? Less: Preferred stock dividend 3,400 ? Earnings available for common shareholders 3,200 ? Earnings Per Share(EPS) 2.13 ?
The following table is extracted from the income statement of Al shams Private Ltd. The company is having 10,000 common stocks, long term debt interest is OMR 1,500 and Preferred stock dividend is OMR 3400. Answer the following question after analyzing the given table YEAR 1 YEAR 2 Earnings before interest and taxes (EBIT) 16,000 44,000 Less: Interest 5,000 ? Net profit before tax 11,000 ? Less: Tax(0.40) 4,400 ? Net profit after tax 6,600 ? Less: Preferred stock dividend 3,400 ? Earnings available for common shareholders 3,200 ? Earnings Per Share(EPS) 2.13 ?
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 12RE: Given the following year-end information, compute Greenwood Corporations basic and diluted earnings...
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- The following table is extracted from the income statement of Al shams Private Ltd. The company is having 10,000 common stocks, long term debt interest is OMR 1,500 and
Preferred stock dividend is OMR 3400. Answer the following question after analyzing the given table
|
YEAR 1 |
YEAR 2 |
|
|
Earnings before interest and taxes (EBIT) |
16,000 |
44,000 |
|
Less: Interest |
5,000 |
? |
|
Net profit before tax |
11,000 |
? |
|
Less: Tax(0.40) |
4,400 |
? |
|
Net profit after tax |
6,600 |
? |
|
Less: Preferred stock dividend |
3,400 |
? |
|
Earnings available for common shareholders |
3,200 |
? |
|
Earnings Per Share(EPS) |
2.13 |
? |
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