Assume the same information for Hedley Corporation as Hedley Corporation had a 2017 net income of $1.4 million. During 2017, Hedley paid a dividend of $5 per share on 100,000 preferred shares. Hedley also had 220,000 common shares outstanding during the year.
Calculate Hedley’s 2017 earnings per share.
EB Corp. reports net income of $40,000 and the number of shares of common stock outstanding is 10,000 shares. Preferred dividends paid was $5,000. Calculate the earnings per share of common stock.
Maxwell Corp. is coming to the market with a new offering of 300,000 shares of stock at $25 to the public. Maxwell will receive $22 per share. The firm has 1 million shares outstanding and earnings of $6 million. What is the amount of dilution in earnings per share?
The following information is available for Sunland Corporation for the year ended December 31, 2020:
| Sales revenue | $840,000 |
| Other revenues and gains | $91,000 |
| Operating expenses | $101,000 |
| Cost of goods sold | $466,000 |
| Other expenses and losses | $30,500 |
| Preferred stock dividends | $40,950 |
The company’s tax rate was 30%, and it had 70,000 shares outstanding during the entire year.
Prepare a corporate income statement.
