W2 Individual Assignment E16-9

W2 Individual Assignment E16-9 - Instructions Compute...

Info icon This preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
E16-19 (EPS: Simple Capital Structure) At January 1, 2008, Langley Company’s outstanding shares included the following. 280,000 shares of $50 par value, 7% cumulative preferred stock 900,000 shares of $1 par value common stock Net income for 2008 was $2,530,000. No cash dividends were declared or paid during 2008. On February 15, 2009, however, all preferred dividends in arrears were paid, together with a 5% stock dividend on common shares. There were no dividends in arrears prior to 2008. On April 1, 2008, 450,000 shares of common stock were sold for $10 per share, and on October 1, 2008, 110,000 shares of common stock were purchased for $20 per share and held as treasury stock.
Image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Instructions Compute earnings per share for 2008. Assume that financial statements for 2008 were issued in March 2009. Dates Shares % Weighted Outstanding Outstanding of Year Shares Opening balance 01/01/08 04/01/08 900,000 0.25 225,000 Issued shares 04/01/08 10/01/08 1,350,000 0.50 675,000 Reacquired shares 10/01/08 12/31/08 1,240,000 0.25 310,000 Weighted average unadj: 1,210,000 Stock dividend: 1.05 Weighted average: 1,270,500 Net Income: 2,530,000 Preferred dividend: (980,000) 1,550,000 2008 Earnings Per Share: $1.22...
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern