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Johnson Company has net income of $10,000 and paid $1,000 cash dividends to its preferred shareholders and $1,750 cash dividends to its common shareholders. At
Johnson Company has net income of $10,000 and paid $1,000 cash dividends to its
preferred shareholders and $1,750 cash dividends to its common shareholders. At
the beginning of the year, there were 10,000 shares of common stock outstanding.
2,000 new shares were issued on July 1. Assuming a simple capital structure, what is
Johnsons basic EPS?
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