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E15.16 (LO 4) (EPS: Simple Capital Structure) On January 1, 2026, Wilke Corp. had 480,000 shares of common stock outstanding. During 2026, it had the
E15.16 (LO 4) (EPS: Simple Capital Structure) On January 1, 2026, Wilke Corp. had 480,000 shares of common stock outstanding. During 2026, it had the following transactions that affected the common stock account. February 1 March 1 May 1 June 1 October 1 Issued 120,000 shares Issued a 10% stock dividend Acquired 100,000 shares of treasury stock Issued a 3-for-1 stock split Reissued 60,000 shares of treasury stock Instructions a. Determine the weighted-average number of shares outstanding as of December 31, 2026. b. Assume that Wilke Corp. earned net income of $3,456,000 during 2026. In addition, it had 100,000 shares of 9%, $100 par nonconvertible, noncumulative preferred stock outstanding for the entire year. Because of liquidity considerations, however, the company did not declare and pay a preferred dividend in 2026. Compute earnings per share for 2026, using the weighted-average number of shares determined in part (a). c. Assume the same facts as in part (b), except that the preferred stock was cumulative. Compute earn- ings per share for 2026. d. Assume the same facts as in part (b), except that net income included a loss from discontinued oper- ations of $432,000 (net of tax). Compute earnings per share for 2026,
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