Quantum Technology had $705,000 of retained earnings on December 31, 2013. The company paid common dividends of $35,200 in 2013 and had retained earnings of $532,000 on December 31, 2012. What would earnings per share be if 45,500 shares of common stock were outstanding?
The following information is available for Wendy’s:
| 2006 | 2005 | |
| Common stockholders’ equity | $1,100,000 | $900,000 |
| Dividends paid to common stockholders | $62,500 | $57,600 |
| Dividends paid to preferred stockholders | $25,000 | $20,000 |
| Net income | $250,000 | $240,000 |
| Common shares outstanding | 100,000 | 100,000 |
Calculate EPS for 2006.
The earnings per share of common stock calculation:
A. is made by dividing net income by the number of shares of common stock outstanding at the end of the year.
B. is complicated by the presence of convertible bonds in the capital structure.
C. is complicated by the declaration of cash dividends during the year.
D. includes gains or losses from treasury stock transactions.
Sosa Bus Company had earnings after taxes of $800,000 in the year 2011 with 200,000 shares of stock outstanding. On Jan. 1, 2010, the firm issued 50,000 new shares. Because of the proceeds from these new shares and other operating improvements, earnings after taxes increased by 30 percent.
A. What are the earnings per share for 2011?
B. What are the earnings per share for 2012?
