On December 31, 2012, the Bennett Company had 115,000 shares of common stock iss
ID: 2646836 • Letter: O
Question
On December 31, 2012, the Bennett Company had 115,000 shares of common stock issued and outstanding. On July 1, 2013, the company sold 21,000 additional shares for cash. Bennett's net income for the year ended December 31, 2013, was $600,000. During 2013, Bennett declared and paid $72,000 in cash dividends on its nonconvertible preferred stock. What is the 2013 basic earnings per share? (Round your answer to 2 decimal places.)
On December 31, 2012, the Bennett Company had 115,000 shares of common stock issued and outstanding. On July 1, 2013, the company sold 21,000 additional shares for cash. Bennett's net income for the year ended December 31, 2013, was $600,000. During 2013, Bennett declared and paid $72,000 in cash dividends on its nonconvertible preferred stock. What is the 2013 basic earnings per share? (Round your answer to 2 decimal places.)
Explanation / Answer
EPS = (600000 - 72000) / (115000 + 21000) = 3.88
Correct option:
d) None of these is correct.Related Questions
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