16 eps answer

16 eps answer - Hufman Company Earnings per share...

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Hufman Company Earnings per share calculation for 2006 Basic Computation of weighted average shares outstanding: Dates Changes Shares O/S Restate* Fraction Weighted 1/1/2006 Beginning balance 120,000 2.00 3/12 60,000 4/1/2006 Issued 30,000 shares 150,000 2.00 3/12 75,000 7/1/2006 Stock split (2:1 or 100%) 300,000 N/A 2/12 50,000 9/1/2006 Repurchase 9,000 shares 291,000 N/A 4/12 97,000 12/31/2006 Ending balance per B/S 291,000 Weighted average outstanding for the year 282,000 * Equals to 1.0 plus the % amount of the dividend (1.0 + 1.0 = 2.0). Numerator (net income - preferred dividends): Net income 800,000 (given) C/Y preferred dividend: (60,000*$5*7%) (21,000) Dividends in arrears N/A (see text) 779,000 Basic EPS: $2.76 (779000 / 282000)
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Hufman Company Earnings per share calculation for 2006 Diluted Evaluate each potentially dilutive security: Convertible preferred stock (1 share of preferred convertible into 2 shares of common) Numerator effect, if converted 21,000 (annual dividend)
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This note was uploaded on 12/14/2011 for the course AC 100 taught by Professor Strickland during the Spring '11 term at Alabama.

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16 eps answer - Hufman Company Earnings per share...

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