Byrd & Che : Apps I 1 Rotman Finance Lai: 1 whaten Research Assignment > Open As
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Byrd & Che : Apps I 1 Rotman Finance Lai: 1 whaten Research Assignment > Open Assignment IMER Start Time: 03:17 PM Remaining: 12 min. HILL SCREEN PRINIERVRSION BACK NEXT ASSIGNMENT RESOURCES Assignment Question 1 Z Your answer has been saved and sent for grading. See Gradebook for score details #8 Ivanhoe Corporation had 80,000 common shares outstanding on December 31, 2016. During 2017, the company issued 9,500 shares on March 1, retired 4,600 shares on July 1, issued a 20% stock dividend on October 1, and issued 14,400 shares on December 1, For 2017, the company reported net income of $320,000 after a loss from discontinued operations of $67,600 (net of tax). The company issued a 2-for-1 stock split on February 1, 2018, and the company's financial statements for the year ended December 31, 2017, were issued on February 28, 2018 Review Score Revieww Study Objective Calculate earnings per share for 2017 as it should be reported to shareholders. (Round answer to 2 decimal places, e.g. 15.25.) Earnings per share Income per share before discontinued operations Discontinued operations loss per share, net of tax Net income per share (0.59 2.82 Question Attempts: 1 of 1 usedExplanation / Answer
Earnings per share = Earnings attributable to Common stock holders/Weighted average number of Common shares
Calculation of weighted average number of common shares:
Common shares outstanding as on December 31,2016 = 80000
Add: Issue of shares on March 1, 2017 = 9500*(10/12) = 7917
Less: Retirement of shares on July 1, 2017 = 4600*(7/12) = 2684
Add: Issuance of 20% stock dividend on October 1,2017 = (80000+9500-4600)*20%*3/12 = 4245
Add: Issuance of shares on December 1, 2017 = 14400*(1/12) = 1200
Total weighted average number of common shares = 96046
Net Income before losses of discontinued operation = 320000+67600 = 387600
Income per share before discontinued operation = 387600/96046 = 4.04
Discontinued operation loss per share, net of tax = 67600/96046 = 0.70
Net income per share = 4.04 - 0.70 = 3.34
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