Jupiter Corporation earned net income of $90,000 this year. The company began the year with 600 shares of common stock and issued 500 more on April 1. They issued $5,000 in preferred dividends for the year. 1. What is Jupiter Corporation’s weighted average number of shares for the year? 2. What is the numerator of the EPS calculation for Jupiter Corporation? 3. What is the EPS for the year for Jupiter Corporation? (rounded to two decimal places)
Jupiter Corporation earned net income of $90,000 this year. The company began the year with 600 shares of common stock and issued 500 more on April 1. They issued $5,000 in preferred dividends for the year. 1. What is Jupiter Corporation’s weighted average number of shares for the year? 2. What is the numerator of the EPS calculation for Jupiter Corporation? 3. What is the EPS for the year for Jupiter Corporation? (rounded to two decimal places)
Chapter14: Corporation Accounting
Section: Chapter Questions
Problem 19EA: Jupiter Corporation earned net income of $90,000 this year. The company began the year with 600...
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Jupiter Corporation earned net income of $90,000 this year. The company began the year with 600 shares of common stock and issued 500 more on April 1. They issued $5,000 in preferred dividends for the year.
1. What is Jupiter Corporation’s weighted average number of shares for the year?
2. What is the numerator of the EPS calculation for Jupiter Corporation?
3. What is the EPS for the year for Jupiter Corporation? (rounded to two decimal places)
Expert Solution
Step 1
EPS = (Net income - Preferred dividend)/Weighted average number of shares
Numerator = Net income - Preferred dividend
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