You are computing annual earnings per share and required disclosures for Tracy Fencing based on company provided

Question:

You are computing annual earnings per share and required disclosures for Tracy Fencing based on company provided information. Net income is $ 4,500,000. The weighted-average number of shares is 2,700,000 shares. The year-end balance of outstanding shares is also 2,700,000 shares. There are options outstanding all year to acquire 1,200,000 shares of at $ 27 per share. The average price of the company’s is $ 36 per share. The firm has 90,000 shares of $ 50 nonconvertible, noncumulative preferred stock outstanding as of the beginning of the year. The rate is $ 1.80 per share. The board of directors declared the annual The company is subject to a 40% tax rate.
Required
a. Based on this information, compute basic and diluted earnings per share for the current year.
b. Prepare the earnings per share disclosure on the income statement beginning with net income. Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...