2-4.ABC Corp. provides you with the following data:Sales:$500,000; Selling Expense $40,000; Operating profit;$300,000; Interest expense:$25,000; Net Income:$100,000; Common stock (par):$16,000; Paid-in capital in exces of par:$214,000; total number of common shares outstanding:46,000.

a.Given the above (and asuming no flotation costs) what was the price of a share of common stock when it was sold?(8 points)

b.Assuming no preferred stock, what was the EPS?(2 points)

Your Answer:

Common stock (par) $10,000

Paid- in Capital in excess of par $210,0000

Total Amount rec from the sale of stock = $220,000

Number of share of commom stock= total from the sale of stock/ # of shares outstanding

=$220,000/ 10,000=$22

b.$100,000/10,000=$10