Wildhorse Inc. presented the following data:

Net income		$5,502,000
Preferred shares: 50,000 shares outstanding, $100 par, 8% cumulative, not convertible		$5,000,000
Common shares: Shares outstanding, Jan. 1, 2017		647,000
Issued for cash, May 1, 2017		114,000
Acquired treasury shares for cash, Sept. 1, 2017 (shares cancelled)		168,000
2for1 stock split, Oct. 1, 2017

As of January 1, 2017, there were no dividends in arrears. On December 31, 2017, Wildhorse declared and paid the preferred dividend for 2017.

Calculate earnings per share for the year ended December 31, 2017. (Round answer to 2 decimal places, e.g. 52.75.)

Earnings per share to be reported

$

What would the effect be on your calculation in (a) if the stock split had been declared on January 30, 2018, instead of on October 1, 2017, assuming the financial statements of Wildhorse Inc. for the year ending December 31, 2017, were issued after January 30, 2018?

If the stock split had occurred on January 30, 2018, before the financial statements for the year ending December 31, 2017 were issued, the results of the calculation for the earnings per share would

decrease? remain unchanged? increase?

.

Assume that Wildhorse did not declare or pay a preferred dividend in 2017. Calculate earnings per share for the year ended December 31, 2017. (Round answer to 2 decimal places, e.g. 15.25.)

Earnings per share

$

Assume that as of January 1, 2017, Wildhorse had two years of dividends in arrears, and that on December 31, 2017, Wildhorse declared and paid the dividends in arrears and the preferred dividend for 2017. Calculate earnings per share for the year ended December 31, 2017. (Round answer to 2 decimal places, e.g. 15.25.)

Earnings per share

$

Assume that the preferred shares are non-cumulative, and that the preferred dividend was paid in 2017. Calculate earnings per share for the year ended December 31, 2017. (Round answer to 2 decimal places, e.g. 15.25.)

Earnings per share

$

Assume that the preferred shares are non-cumulative, and that Wildhorse did not declare or pay a preferred dividend in 2017. Calculate earnings per share for the year ended December 31, 2017. (Round answer to 2 decimal places, e.g. 15.25.)

Earnings per share

$

Would a current shareholder favour Wildhorse Inc.s declaration of a stock split?

A current shareholder would

unfavour? favour?

Wildhorse Inc.s declaration of a stock split.