On 1/1/2021 Steel Corp. has 600,000 shares of common stock issued and outstanding and 300,000 shares...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
On 1/1/2021 Steel Corp. has 600,000 shares of common stock issued and outstanding and 300,000 shares of 8%, noncumulative, nonconvertible, preferred stock issued and outstanding. • February 28th Steel sold 60,000 shares of common stock. May 15th Steel issued a 4% common stock dividend. • July 1st Steel repurchased and then retired 2,000 shares of common stock. • December 15th Steel paid cash dividends of $400,000 to common and $75,000 to preferred. Net income for 2021 was $2,100,000, the company's tax rate is 40%, and the average market price of its common shares for the year is $32 per share. As part of an incentive compensation plan, Steel granted incentive stock options to division managers in 2019, 2020, and 2021. Each option permits the hold to buy one share of common stock at an exercise price equal to the market price on the date of the grant. Dated Granted 12/31/2016 12/31/2017 12/31/2018 Share Price Date Exercisable 1/1/2018 1/1/2019 1/1/2020 Options Granted 8,000 3,000 6,500 $24 $33 $32 Compute Steel's Basic and Diluted Earnings per Share for the year ended 12/31/2021. On 1/1/2021 Steel Corp. has 600,000 shares of common stock issued and outstanding and 300,000 shares of 8%, noncumulative, nonconvertible, preferred stock issued and outstanding. • February 28th Steel sold 60,000 shares of common stock. May 15th Steel issued a 4% common stock dividend. • July 1st Steel repurchased and then retired 2,000 shares of common stock. • December 15th Steel paid cash dividends of $400,000 to common and $75,000 to preferred. Net income for 2021 was $2,100,000, the company's tax rate is 40%, and the average market price of its common shares for the year is $32 per share. As part of an incentive compensation plan, Steel granted incentive stock options to division managers in 2019, 2020, and 2021. Each option permits the hold to buy one share of common stock at an exercise price equal to the market price on the date of the grant. Dated Granted 12/31/2016 12/31/2017 12/31/2018 Share Price Date Exercisable 1/1/2018 1/1/2019 1/1/2020 Options Granted 8,000 3,000 6,500 $24 $33 $32 Compute Steel's Basic and Diluted Earnings per Share for the year ended 12/31/2021.
Expert Answer:
Answer rating: 100% (QA)
We know that the earning per share is the allocated profit of each share It is calculated by dividin... View the full answer
Related Book For
College Accounting A Practical Approach
ISBN: 9780134729312
14th edition
Authors: Jeffrey Slater, Mike Deschamps
Posted Date:
Students also viewed these accounting questions
-
1. Verify that 2. Prove that J = | XK.K |= X k.k = 1 2.J 1 = EK EKLM & klmXk,KX1,LXm,M 6 &KLM &kimX1,LXm,M (JX K.k),K = 0 (J-Xk,K), k = 0 = JXK. xk.K
-
A firm has 2,000,000 shares of common stock outstanding with a market price of $2.00 each. It has 2,000 bonds outstanding, each with a market value of $1,200 (120 percent of face). The bonds mature...
-
A firm has 1 million shares of common stock outstanding with a book value of $5 per share. The firm also has total assets with a book value of $10 million. There is no preferred stock. What are the...
-
Various streptococci and lactobacilli were traditionally grouped together as lactic acid bacteria because of their characteristic fermentation. Most of them were found to have a DNA Guanine plus...
-
Dance Creations manufactures authentic Hawaiian hula skirts that are purchased for traditional Hawaiian celebrations, costume parties, and other functions. During its first year of business, the...
-
Boston Executive, Inc., produces executive limousines and currently manufactures the mini-bar inset at these costs: The company received an offer from Elite Mini-Bars to produce the insets for $2,100...
-
The probability of randomly selecting an ace from a standard deck of 52 playing cards is about 0.077. Classify the statement as an example of classical probability, empirical probability, or...
-
Statement of Financial Position Adjustment and Preparation, the adjusted trial balance of Eastwood Company and other related information for the year 2010 are presented below. Additional information:...
-
You are the HR Manager of a rapidly expanding technology company that acquired a smaller tech firm 2 years ago. Both companies had maintained low turnover rates in their respective call centers prior...
-
Using the 4-quarter moving average: What is the forecast for 3Q 2022, 4Q 2022, 1Q 2023, and 2Q 2023 2. Compute the forecast for 3Q 2022, 4Q 2022, 1Q 2023, and 2Q 2023 using exponential smoothing...
-
Behavioural regulation approaches recognize that how well instrumental conditioning proceeds depends on alternate sources of reinforcement. For instance, suppose you restrict your child's video games...
-
What are the two principal types of legal risk that a business may insure against?
-
When does an unpaid seller have a lien on the goods sold? When is there a right of repossession?
-
The principles of mistake and discharge by frustration may both relate to contracts in which the subject matter is non-existent. How do these principles and their remedies differ?
-
What determines who bears the risk of loss when goods that are the subject matter of a contract of sale are destroyed?
-
In what respect does the arrangement known as accord and satisfaction involve a discharge of a contract?
-
It is difficult to estimate the MRP of point guards in basketball, compared to hitters in baseball, because: Question 17 options: (a) Basketball is a complex invasion sport (b) There are fewer...
-
(a) Find the equation of the tangent line to f(x) = x 3 at the point where x = 2. (b) Graph the tangent line and the function on the same axes. If the tangent line is used to estimate values of the...
-
Complete a trend analysis from the following data of Hail Corporation using 2019 as the base year. (Round to the nearest percent.) 2022 2021 2020 2019 Sales $620,000 $530,000 $440,000 $350,000 Gross...
-
The Dandylion Company uses the periodic inventory system. Calculate the cost of ending inventory and cost of goods sold using the (a) FIFO, (b) LIFO,? (c) Weighted average methods. Dandylion sells...
-
In stock subscriptions, why does one credit Common Stock Subscribed?
-
The kinematic viscosity and specific gravity of a liquid are \(3.5 \times 10^{-4} \mathrm{~m}^{2} / \mathrm{s}\) and 0.79, respectively. What is the dynamic viscosity of the liquid in SI units?
-
A liquid has a specific weight of \(59 \mathrm{lb} / \mathrm{ft}^{3}\) and a dynamic viscosity of \(2.75 \mathrm{lb} \cdot \mathrm{s} / \mathrm{ft}^{2}\). Determine its kinematic viscosity.
-
Fluids for which the shearing stress, \(\tau\), is not linearly related to the rate of shearing strain, \(\dot{\gamma}\), are designated as nonNewtonian fluids. Such fluids are commonplace and can...
Study smarter with the SolutionInn App