On December 31, 2023, Dow Steel Corporation had 800,000 shares of common stock and 50,000 shares of 8%, noncumulative, nonconvertible preferred stock issued and outstanding.Dow issued a 4% common stock dividend on May 15 and paid cash dividends of $600,000 and $89,000 to common and preferred shareholders, respectively, on December 15, 2024.On February 28, 2024, Dow sold 75,000 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 $3,100,000. The income tax rate is 25%.Compute Dow's earnings per share for the year ended December 31, 2024.

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Answered: On December 31, 2023, Dow Steel…

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

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On December 31, 2023, Dow Steel Corporation had 800,000 shares of common stock and 50,000 shares of 8%, noncumulative, nonconvertible preferred stock issued and outstanding.

Dow issued a 4% common stock dividend on May 15 and paid cash dividends of $600,000 and $89,000 to common and preferred shareholders, respectively, on December 15, 2024.
On February 28, 2024, Dow sold 75,000 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 $3,100,000. The income tax rate is 25%.

Compute Dow's earnings per share for the year ended December 31, 2024.

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