On December 31, 2023, Dow Steel Corporation had 710,000 shares of common stock and 41,000 shares of 7%, noncumulative, nonconvertible preferred stock issued and outstanding. • Dow issued a 4% common stock dividend on May 15 and paid cash dividends of $510,000 and $80,000 to common and preferred shareholders, respectively, on December 15, 2024. • On February 28, 2024, Dow sold 63,000 common shares. • In keeping with its long-term share repurchase plan, 4,000 shares were retired on July 1. • Dow's net income for the year ended December 31, 2024, was $2,650,000. The income tax rate is 25%. Required: Compute Dow's earnings per share for the year ended December 31, 2024. Note: Do not round intermediate calculations. Except for per share amounts, enter your answers in thousands (i.e., 10,000 should be entered as 10). Round "Earnings per share" answer to 2 decimal places. Numerator Denominator C Earnings per share
On December 31, 2023, Dow Steel Corporation had 710,000 shares of common stock and 41,000 shares of 7%, noncumulative, nonconvertible preferred stock issued and outstanding. • Dow issued a 4% common stock dividend on May 15 and paid cash dividends of $510,000 and $80,000 to common and preferred shareholders, respectively, on December 15, 2024. • On February 28, 2024, Dow sold 63,000 common shares. • In keeping with its long-term share repurchase plan, 4,000 shares were retired on July 1. • Dow's net income for the year ended December 31, 2024, was $2,650,000. The income tax rate is 25%. Required: Compute Dow's earnings per share for the year ended December 31, 2024. Note: Do not round intermediate calculations. Except for per share amounts, enter your answers in thousands (i.e., 10,000 should be entered as 10). Round "Earnings per share" answer to 2 decimal places. Numerator Denominator C Earnings per share
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 10MC
Related questions
Question
![On December 31, 2023, Dow Steel Corporation had 710,000 shares of common stock and 41,000 shares of 7%,
noncumulative, nonconvertible preferred stock issued and outstanding.
• Dow issued a 4% common stock dividend on May 15 and paid cash dividends of $510,000 and $80,000 to common
and preferred shareholders, respectively, on December 15, 2024.
• On February 28, 2024, Dow sold 63,000 common shares.
• In keeping with its long-term share repurchase plan, 4,000 shares were retired on July 1.
• Dow's net income for the year ended December 31, 2024, was $2,650,000. The income tax rate is 25%.
Required:
Compute Dow's earnings per share for the year ended December 31, 2024.
Note: Do not round intermediate calculations. Except for per share amounts, enter your answers in thousands (i.e.,
10,000 should be entered as 10). Round "Earnings per share" answer to 2 decimal places.
Numerator + Denominator
=
Earnings per share](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7cd338bb-3738-4289-b54a-3b7b8416cf99%2F99178b65-d533-43ef-ace0-6ca167354def%2Fl4jt9sn_processed.jpeg&w=3840&q=75)
Transcribed Image Text:On December 31, 2023, Dow Steel Corporation had 710,000 shares of common stock and 41,000 shares of 7%,
noncumulative, nonconvertible preferred stock issued and outstanding.
• Dow issued a 4% common stock dividend on May 15 and paid cash dividends of $510,000 and $80,000 to common
and preferred shareholders, respectively, on December 15, 2024.
• On February 28, 2024, Dow sold 63,000 common shares.
• In keeping with its long-term share repurchase plan, 4,000 shares were retired on July 1.
• Dow's net income for the year ended December 31, 2024, was $2,650,000. The income tax rate is 25%.
Required:
Compute Dow's earnings per share for the year ended December 31, 2024.
Note: Do not round intermediate calculations. Except for per share amounts, enter your answers in thousands (i.e.,
10,000 should be entered as 10). Round "Earnings per share" answer to 2 decimal places.
Numerator + Denominator
=
Earnings per share
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