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 = 36,600 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 $106,000

Hint: check EPS formula in the chapter of Financial Statement Analysis

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)

Required 1 Basic Earnings Per Share EPS Net Income Available to Common Shareholders Net I... View the full answer