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On December 3 1 , 2 0 2 3 , Dow Steel Corporation had 6 8 0 , 0 0 0 shares of common stock
On December Dow Steel Corporation had shares of common stock and shares of noncumulative,
nonconvertible preferred stock issued and outstanding.
Dow issued a common stock dividend on May and paid cash dividends of $ and $ to common and
preferred shareholders, respectively, on December
On February Dow sold common shares.
In keeping with its longterm share repurchase plan, shares were retired on July
Dow's net income for the year ended December was $
The income tax rate is
Also, as a part of a agreement for the acquisition of Merrill Cable Company, another shares already adjusted for
the stock dividend are to be issued to former Merrill shareholders on December if Merrill's net income is at least
$
In Merrill's net income was $
As part of an incentive compensation plan, Dow granted incentive stock options to division managers on December of the
current and each of the previous two years.
Each option permits its holder to buy one share of common stock at an exercise price equal to market value at the date of grant
and can be exercised one year from that date.
Information concerning the number of options granted and common share prices follows:
The market price of the common stock averaged $ per share during
On July Dow issued $ of convertible bonds at face value.
Each $ bond is convertible into common shares adjusted for the stock dividend
Required:
Compute Dow's basic and diluted earnings per share for the year ended December
Note: Do not round intermediate calculations. Except for per share amounts, enter your answers in thousands ie should
be entered as Round "Earnings per share" answer to decimal places.
Answer is not complete.
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