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ABC corp. reported net income of $200 million in 2021(tax rate 25%). It has 15 million shares of cumulative 5% preferred stock, $10 par, outstanding.
ABC corp. reported net income of $200 million in 2021(tax rate 25%). It has 15 million shares of cumulative 5% preferred stock, $10 par, outstanding. The preferred stocks are not convertible. It's capital structure included the following.
Jan. 1 100 million common shares were outstanding
May. 1 10 million shares were reacuired as treasury stock
June. 1 A 25% stock dividend was distributed
Aug. 1 20 million new shares were sold
Required: Compute ABC's basic earnings per share for the year ended December 31, 2021. Show calculation.
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