Question

McDonnell-Myer Corporation reported net income of $1,323 million. The company had 464 million common shares outstanding...

McDonnell-Myer Corporation reported net income of $1,323 million. The company had 464 million common shares outstanding at January 1 and sold 36 million shares on Feb. 28. As part of an annual share repurchase plan, 6 million shares were retired on April 30 for $31 per share.

Calculate McDonnell-Myer's earnings per share for the year. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

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Answer #1

Earnings per Share= Net Income/ Weighted Average shares Outstanding

Net Income $ 1,323.00
Weighted Average shares Outstanding          490.00
EPS $          2.70
Calculation of Weighted Average shares Outstanding
Date In Millions
Jan-01 Opening Balance 464*12/12 464
Feb-28 Sold 36*10/12 30
Apr-30 Retired 6*8/12 -4
Weighted Average shares Outstanding 490
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