Viceroy Ltd has a December 31 year-end. Its ledger account for Common Shares (Class A voting) showed the following information (dollars amounts are in thousands):

Opening Balance Jan1 = 400,000 shares
Shares issued June 30 = 200,000
Shares issued September 30 = $88,200
Net Income for the Year =$2,000,000
Preferred Shares (Class B Non Voting Cumulative) = 50,000 shares ($600)
Preferred Share Dividend entitlement for the year $192,000

Required 1: What is the Basic Earnings Per Share that Viceroy will report this year? Hint: when number of shares change during the term, a simple average does not apply, instead use the weighted average number of common shares. $

Required 2: The weighted average number of common shares for the year is:

Required 3: The total earnings considered in the EPS formula for the year is: $

Answer rating: 100% (QA)

1 Calculation of basic EPS earnings weighted average no of shares 1808000 522050 share... View the full answer