Earnings per share (EPS) : The amount of earnings made available to each common share is referred to as earnings per share. Dilutive securities like convertible bonds, convertible preferred stock, and stock options, reduce the EPS by increasing the common shares. Use the following formula to determine EPS: Earnings per share } = Earnings available to common shareholders Weighted average number of common shares outstanding = Net income –Preferred dividends Weighted average number of common shares outstanding To determine : The basic and diluted EPS of Incorporation B for the year ended December 31, 2018

Question

Want to see the full answer?

Answer 1

Question

Chapter 19, Problem 19.17E

To determine

Earnings per share (EPS): The amount of earnings made available to each common share is referred to as earnings per share. Dilutive securities like convertible bonds, convertible preferred stock, and stock options, reduce the EPS by increasing the common shares.

Use the following formula to determine EPS:

Earnings per share} = Earnings available to common shareholdersWeighted average number of common shares outstanding= Net income –Preferred dividendsWeighted average number of common shares outstanding

To determine: The basic and diluted EPS of Incorporation B for the year ended December 31, 2018

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Problem 1. The stockholders' equity section of Kookie Co. revealed the following information on December 31, 2022. Preference stock, P50 par Share premium – preference Ordinary stock, P15 par Share premium – ordinary Subscribed ordinary stock Retained earnings 2,300,000 805,000 5,250,000 2,750,000 150,000 1,900,000 400,000 Subscriptions receivable – ordinary (collectible next month) Required: Answer the following questions with supporting computations: 1. How much is the legal capital? 2. How much is the total paid in capital? 3. What is the amount of the stockholders' equity on 12/31/2022? 4. How many preference shares were issued? 5. How many ordinary shares were subscribed?

Required information Problem 8-24 (Algo) Common and preferred stock-issuances and dividends LO 1, 2 [The following information applies to the questions displayed below.] Permabilt Corp. was incorporated on January 1, 2019, and issued the following stock for cash: • 1,100,000 shares of no-par common stock were authorized; 342,000 shares were issued on January 1, 2019, at $26 per share. • 381,000 shares of $90 par value, 9.10% cumulative, preferred stock were authorized; 132,000 shares were issued on January 1, 2019, at $128 per share. • No dividends were declared or paid during 2019 or 2020. However, on December 22, 2021, the board of directors of Permabilt Corp. declared dividends of $6,260,000, payable on February 12, 2022, to holders of record as of January 8, 2022. Problem 8-24 (Algo) Part c c. Calculate the common stock dividends per share declared during 2021. (Round your answer to 2 decimal places.) Common stock dividends per share

! Required information Problem 10-2A (Algo) Record equity transactions and indicate the effect on the balance sheet equation (LO10-2, 10-3, 10-4, 10-5) [The following information applies to the questions displayed below.] Donnie Hilfiger has two classes of stock authorized: $1 par preferred and $0.01 par value common. As of the beginning of 2024, 320 shares of preferred stock and 4,200 shares of common stock have been issued. The following transactions affect stockholders' equity during 2024: March 1 May 15 July 10 October 15 December 1 Issue 1,300 shares of common stock for $44 per share. Purchase 420 shares of treasury stock for $37 per share. Resell 220 shares of treasury stock purchased on May 15 for $42 per share. Issue 220 shares of preferred stock for $47 per share. Declare a cash dividend on both common and preferred stock of $0.70 per share to all stockholders of record on December 15. (Hint: Dividends are not paid on treasury stock.) December 31 Pay the cash dividends…