Question

Cullumber Corporation had 2017 net income of $1.7 million. During 2017, Cullumber paid a dividend of...

Cullumber Corporation had 2017 net income of $1.7 million. During 2017, Cullumber paid a dividend of $4 per share on 82,000 preferred shares. Cullumber also had 240,000 common shares outstanding during the year. Calculate Cullumber’s 2017 earnings per share.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Earning per Share (EPS) is the portion of a company's profit allocated to each share of common stock . Earning per share serve as an indicator of a company's profitability

The formula for EPS is

Earning per share = (Net Income - Preferred Dividends)/Common Shares Outstanding during the year

Net Income During the year is $17 00 000

Preferred Dividend paid = 82000 shares X $ 4 per share =$3 28 000

Common shares outstanding 240000 nos

Earning per share = ($17 00 000 - $3 28 000)/240000 nos = $57.16 per Share

Earning per share = $57.16

Thanks

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Cullumber Corporation reported net income of $320,000 in 2020 and had 770,000 common shares outstanding throughout...
Cullumber Corporation reported net income of $320,000 in 2020 and had 770,000 common shares outstanding throughout the year. On May 1, 2020, Cullumber issued 5% convertible bonds. Each $1,000 bond is convertible into 120 common shares. Total proceeds at par amounted to $990,000, and was allocated to the liability and equity components under the residual value method. The liability component was measured first, at present value of the stream of interest payments plus present value of the bond maturity value,...
Oriole Inc. had net income for the current year ending December 31, 2017 of $919,840. During...
Oriole Inc. had net income for the current year ending December 31, 2017 of $919,840. During the entire year, there were 509,000 common shares outstanding. The company had two classes of preferred shares outstanding: the Class A preferred shares were $2.00 cumulative shares of which 12,000 were outstanding, and were convertible to common shares at a rate of 1:1. There were 105,000 $6.00 Class B non-cumulative preferred shares outstanding that were also convertible at a rate of 1:1. Oriole had...
On January 1, 2017, Carla Vista Ltd. had 510,000 common shares outstanding. During 2017, it had...
On January 1, 2017, Carla Vista Ltd. had 510,000 common shares outstanding. During 2017, it had the following transactions that affected the common share account: Feb. 1 Issued 183,000 shares. Mar. 1 Issued a 12% stock dividend. May 1 Acquired 210,000 common shares and retired them. June 1 Issued a 3-for-1 stock split. Oct. 1 Issued 51,000 shares. The company’s year end is December 31. Determine the weighted average number of shares outstanding as at December 31, 2017. Assume that...
Financial Education Corporation earned net income of $153,400 and paid the minimum dividend to preferred stockholders...
Financial Education Corporation earned net income of $153,400 and paid the minimum dividend to preferred stockholders for 2018. Assume there are no changes in common stock outstanding during 2018. FINEDCO, as it is called, has the following balances in its financial accounting system: Preferred Stock – 6%, $60 par value, 2,000 shares authorized, 1,000 shares issued and outstanding $ 60,000 Common Stock - $5 par value; 80,000 shares authorized, 48,000 shares Issued and outstanding 240,000 Paid-in-capital – common shares 460,000...
1. Windsor Corporation had 318,000 shares of common stock outstanding on January 1, 2017. On May...
1. Windsor Corporation had 318,000 shares of common stock outstanding on January 1, 2017. On May 1, Windsor issued 31,500 shares. (a) Compute the weighted-average number of shares outstanding if the 31,500 shares were issued for cash. Weighted-average number of shares outstanding $ (b) Compute the weighted-average number of shares outstanding if the 31,500 shares were issued in a stock dividend. Weighted-average number of shares outstanding $ 2. Sarasota Corporation reported net income of $230,000 in 2017 and had 47,700...
At December 31, 2017 and 2018, Funk & Noble Corporation had outstanding 1,200 million shares of...
At December 31, 2017 and 2018, Funk & Noble Corporation had outstanding 1,200 million shares of common stock and 18 million shares of 6%, $100 par value cumulative preferred stock. No dividends were declared on either the preferred or common stock in 2017 or 2018. Net income for 2018 was $2,628 million. The income tax rate is 40%. Calculate earnings per share for the year ended December 31, 2018.
McDaniel Corporation had net income for 2016 of $82,000. McDaniel had 12,000 shares of common stock...
McDaniel Corporation had net income for 2016 of $82,000. McDaniel had 12,000 shares of common stock outstanding at the beginning of the year and 26,000 shares of common stock outstanding at the end of the year. There were 9,000 shares of preferred stock outstanding all year. During​ 2016, McDaniel declared and paid preferred dividends of $26,000. On December​ 31, 2106, the market price of​ McDaniel's common stock is $46 per share and the market price of its preferred stock is...
Wildhorse Corporation reported net income of $386,100 in 2017 and had 217,000 shares of common stock...
Wildhorse Corporation reported net income of $386,100 in 2017 and had 217,000 shares of common stock outstanding throughout the year. Also outstanding all year were 51,000 options to purchase common stock at $10 per share. The average market price of the stock during the year was $15. Compute diluted earnings per share. (Round answer to 2 decimal places, e.g. 3.55.) Diluted earnings per share
NEZNEZ Corporation had net income for 2018 of $36,500. NEZNEZ had 1,800 shares of common stock...
NEZNEZ Corporation had net income for 2018 of $36,500. NEZNEZ had 1,800 shares of common stock outstanding at the beginning of the year and 24,200 shares of common stock outstanding as of December​ 31, 2018. During the​ year, NEZNEZ declared and paid preferred dividends of $20,250. Compute NEZNEZ​'s earnings per share. Select the​ formula, then enter the amounts to calculate NEZNEZ ​Corporation's earnings per share as of December​ 31, 2018. ​(Abbreviations used: Ave.​ = average, OS​ = outstanding, SE​ =...
Skysong Inc. had net income for the current year ending December 31, 2017 of $1,076,730. During...
Skysong Inc. had net income for the current year ending December 31, 2017 of $1,076,730. During the entire year, there were 509,000 common shares outstanding. The company had two classes of preferred shares outstanding: the Class A preferred shares were $2.31 cumulative shares of which 10,000 were outstanding, and were convertible to common shares at a rate of 1:1. There were 108,000 $6.31 Class B non-cumulative preferred shares outstanding that were also convertible at a rate of 1:1. Skysong had...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT