Viceroy Ltd has a December 31 year-end. Its ledger account for Common Shares (Class A voting) showed the following information (dollars amounts are in thousands):

Opening Balance Jan 1 = 300,000 shares

Shares issued June 30 = 150,000

Shares issued September 30 = $64.000

Net Income for the Year = $2,000,000

Preferred Shares (Class B Non Voting Cumulative) = 50,000 shares ($500)

Preferred Share Dividend entitlement for the year $155,000 Hint: check EPS formula in the chapter of Financial Statement Analysis

Required 1: What is the Basic Earnings Per Share that Viceroy will report this year? Hint: when the number of shares change during the term, a simple average does not apply, instead use the weighted average number of common shares:

Required 2: The weighted average number of common shares for the year is:

Required 3: The total earnings considered in the EPS formula for the year is: