Problem 19-12 (Algo) EPS; nonconvertible preferred stock; treasury shares; shares sold; stock dividend; options [LO19-4, 19-5,...
Fantastic news! We've Found the answer you've been seeking!
Question:
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/6656f3043fb20_3396656f303bf974.jpg)
Transcribed Image Text:
Problem 19-12 (Algo) EPS; nonconvertible preferred stock; treasury shares; shares sold; stock dividend; options [LO19-4, 19-5, 19-6, 19-7, 19-8, 19-10] On December 31, 2020, Dow Steel Corporation had 610,000 shares of common stock and 301,000 shares of 9%, noncumulative, nonconvertible preferred stock issued and outstanding. Dow issued a 4% common stock dividend on May 15 and paid cash dividends of $410,000 and $70,000 to common and preferred shareholders, respectively, on December 15, 2021. On February 28, 2021, Dow sold 63,000 common shares. In keeping with its long-term share repurchase plan, 2,000 shares were retired on July 1. Dow's net income for the year ended December 31, 2021, was $2,150,000. The income tax rate is 25%. As part of an incentive compensation plan, Dow granted incentive stock options to division managers at December 31 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: Date Granted December 31, 2019 December 31, 2020 December 31, 2021 Options Granted (adjusted for the stock dividend) Share Price 9,000 4,000 7,500 $10 $19 $18 The market price of the common stock averaged $18 per share during 2021. Required: Compute Dow's earnings per share for the year ended December 31, 2021. (Do not round intermediate calculations. Enter your answers in thousands. Round "Earnings per share" answers to 2 decimal places.) Dow's basic Dow's diluted Numerator Denominator Earnings per share Problem 19-12 (Algo) EPS; nonconvertible preferred stock; treasury shares; shares sold; stock dividend; options [LO19-4, 19-5, 19-6, 19-7, 19-8, 19-10] On December 31, 2020, Dow Steel Corporation had 610,000 shares of common stock and 301,000 shares of 9%, noncumulative, nonconvertible preferred stock issued and outstanding. Dow issued a 4% common stock dividend on May 15 and paid cash dividends of $410,000 and $70,000 to common and preferred shareholders, respectively, on December 15, 2021. On February 28, 2021, Dow sold 63,000 common shares. In keeping with its long-term share repurchase plan, 2,000 shares were retired on July 1. Dow's net income for the year ended December 31, 2021, was $2,150,000. The income tax rate is 25%. As part of an incentive compensation plan, Dow granted incentive stock options to division managers at December 31 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: Date Granted December 31, 2019 December 31, 2020 December 31, 2021 Options Granted (adjusted for the stock dividend) Share Price 9,000 4,000 7,500 $10 $19 $18 The market price of the common stock averaged $18 per share during 2021. Required: Compute Dow's earnings per share for the year ended December 31, 2021. (Do not round intermediate calculations. Enter your answers in thousands. Round "Earnings per share" answers to 2 decimal places.) Dow's basic Dow's diluted Numerator Denominator Earnings per share
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
Recall that the velocity of the falling parachutist can be computed by [Eq. (1.10)], v(t) = 8m/c (1
-
Write a system of inequalities to model this situation. Juliette is selling fresh lemonade and cupcakes. She sells a cup of lemonade for \(\$ 2\) and a cupcake for \(\$ 3\). She needs to make at...
-
17-6. Qu elemento promocional debe ofrecerse solo a corto plazo?
-
Troy Manufacturing, Inc., produces exercise bicycles. The costs of manufacturing and marketing exercise bicycles at the company's normal volume of 3,000 units per month follow: Unless otherwise...
-
You are evaluating ways to expand an optometry practice and its earnings capacity, Optometrists perform eye exams prescribe corrective lenses (eyeglasses and contact lenses), and sell corrective...
-
1 .If foreign investors buy more U.S. stocks and bonds, how would that show up in the current account balance? 2 .If the trade deficit of the United States increases, how is the current account...
-
A 10 mm thick steel plate with dimensions of 10 x 10 cm and a density of 7.85 g/cm was submerged in seawater for a period of 1 year. During this period the weight of the plate reduced by 20 grams. Kw...
-
Consider the function f(x1,x2) = x 5x1x2 + 6x at the point x = (0, 2) and search direction p = (1, 1). 1. Write down the first-order Taylor approximation to f(x + ap), where a is the step size. 2....
-
Nike Company has hired a consultant to propose a way to increase the company\'s revenues. The consultant has evaluated two mutually exclusive projects with the following information provided for...
-
What are the most effective way to manage routine and catastrophic disasters, and are they different?
-
The Wall Street Journal reported that of taxpayers with adjusted gross incomes between and itemized deductions on their federal income tax return. The mean amount of deductions for this population of...
-
When is a shoulder eyebolt used? A shoulder eyebolt is used when: POSSIBLE ANSWERS: A load must be turned and flipped. Side forces will impact a load. Vertical forces will impact a load. A load is...
-
Valuation of single-tenant properties. In court cases involving real estate, experts are hired to estimate the value of properties. The estimate will vary depending on the method of valuation...
-
Wind turbine database. A wind turbine turns wind energy into electricity using the aerodynamic force from the rotor blades. In 2019, wind power accounted for 5 percent of all electricity generated in...
-
6.00 Dollar General BBB-8.45 7.756.90 N/A Dollar Tree BBB-7.50 6.85 N/A N/A Family Dollar BBB-8.50 7.50 N/A N/A Kohls BBB-8.50 7.256.50 6.35 Kroger BBB7.25 6.756.25 6.00 Lowes BBB+6.70 6.105.45 5.00...
Programming Machine Learning From Coding To Deep Learning 1st Edition - ISBN: 1680506609 - Free Book
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App