Midtown Holding Company operates numerous businesses, including motel, auto rental, and real estate companies. Year 20X6 was
Question:
Midtown Holding Company operates numerous businesses, including motel, auto rental, and real estate companies. Year 20X6 was interesting for Midtown, which reported the following on its income statement (in millions):
Net revenues ................................................................$3,930
Total expenses and other.............................................. 3,354
Income from continuing operations.............................. 576
Discontinued operations, net of tax.............................. 84
Income before extraordinary item, net of tax ............... 660
Extraordinary gain, net of tax ...................................... 8
Net income................................................................... $ 668
During 20X6, Midtown had the following (in millions, except for par value per share):
Common stock, $0.01 par value, 900 shares issued ................ $ 9
Treasury stock, 180 shares at cost...........................................(3,568)
Required
Show how Midtown should report earnings per share for 20X6.
Par ValuePar value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...
Step by Step Answer:
Financial Accounting
ISBN: 978-0135012840
7th edition
Authors: Walter T. Harrison, Charles T. Horngren