whatsapp

Connect on Whatsapp : +1 206 673 2541, Get Homework Help 24x7, 100% Confidential. Connect Now

Accounting | Accounting homework help

Glow Corporation has 50,000 shares of preferred shares outstanding, with annual dividends paid at the rate of $1.50 per share. Glow also has 100,000 shares of common shares outstanding.

If Glow declares a $250,000 dividend in 2013, each outstanding share of common shares would receive:

A. $1.50

B. $1.75

C. $1.17

D. $2.50

The Heath Corporation reported a net income for 2015 of $177,500. Heath began the year with 100,000 shares of $5 par value common shares outstanding and 2,500 shares of $100 par value 8% preferred shares outstanding. On October 1, Heath sold 10,000 shares of common stock for $6 per share.

Heath paid dividends to the common shareholders in December. The basic earnings for 2015 are:

A. $1.43 per share.

B. $1.50 per share.

C. $1.54 per share.

D. $1.73 per share.

The net income of Foster Furniture. Inc. amounted to $1,920,000 for the current year.

Compute the amount of earnings per share assuming that the shares of capital stock outstanding throughout the year consisted of:

1. 400,000 shares of $ 1 par value common stock and no preferred stock.

2. 100,000 shares of 8 percent, $ 100 par value preferred stock and 300,000 shares of $5 par value common stock.

b. Is the earnings per share figure computed in part a(2) considered to be basic or diluted’ Explain.

Get FREE Essay Price Quote
Pages (550 words)
Approximate price: -