At January 1, 2025, Sunland Company's outstanding shares included the following. 298,000 shares of $50 par...

 

Transcribed Image Text:

At January 1, 2025, Sunland Company's outstanding shares included the following. 298,000 shares of $50 par value, 7% cumulative preferred stock 921,000 shares of $1 par value common stock Net income for 2025 was $2,560,000. No cash dividends were declared or paid during 2025. On February 15, 2026, however, all preferred dividends in arrears were paid, together with a 5% stock dividend on common shares. There were no dividends in arrears prior to 2025. On April 1, 2025, 426,000 shares of common stock were sold for $10 per share, and on October 1, 2025, 106,000 shares of common stock were purchased for $21 per share and held as treasury stock. Compute earnings per share for 2025. Assume that financial statements for 2025 were issued in March 2026. (Round answer to 2 decimal places, e.g. 2.55.) At January 1, 2025, Sunland Company's outstanding shares included the following. 298,000 shares of $50 par value, 7% cumulative preferred stock 921,000 shares of $1 par value common stock Net income for 2025 was $2,560,000. No cash dividends were declared or paid during 2025. On February 15, 2026, however, all preferred dividends in arrears were paid, together with a 5% stock dividend on common shares. There were no dividends in arrears prior to 2025. On April 1, 2025, 426,000 shares of common stock were sold for $10 per share, and on October 1, 2025, 106,000 shares of common stock were purchased for $21 per share and held as treasury stock. Compute earnings per share for 2025. Assume that financial statements for 2025 were issued in March 2026. (Round answer to 2 decimal places, e.g. 2.55.)

Answer rating: 100% (QA)

To compute earnings per share EPS for 2025 we need to calculate the weighted average number of share... View the full answer