Jem100 Posts: 10, Reputation: 1 New Member   #1 Jul 29, 2012, 11:59 PM

Weighted Average on Common Shares, and EPS Part V If McCumbers Inc. has the following stockholders' equity section of its balance sheet at December 31, 2011: Preferred Stock, 6% $100 par value, 1,000 shares authorized, issued/ and outstanding... $1,100,000 Premium on Preferred Stock... 50,000 Common Stock,$10 par value, 250,000 shares authorized 120,000 shares issued and outstanding... 1,200,000 Additional Paid-in Capital... 360,000 Retained Earnings... 860,000 Total Stockholders' Equity $3/570,000 Required: 1} Determine the 2011 book value per share of preferred stock. 2) Determine the 2011 book value per share of common stock. If McCumbers Inc. of part V earned net income of $595/000 for the current year (2012) and preferred dividends of $66,000 during that period. At December 13, 2012 a 2 for 1 common stock split had been executed and that 20,000 new common stock shares had been issued on May 1, 2012 and 5,000 shares of treasury stock had been acquired on November 1st. Determine the following: a. The 2012 net income available to common Shareholders; b. The weighted average common shares outstanding; c. The basic earnings per share (EPS).

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