Question 3 Earnings Per Share

Hummingbird Inc. has $ 450,000 of income in 2016. During that time it declared preferred dividends in the amount of $15,000.

Using the information below

Jan 1 120,000 common shares were outstanding

Aug 1 Sold 35,000 common shares

Sep 1 Issued a 10% share dividend

Calculate the weighted average number of common shares outstanding during the year.

Calculate earnings per share.