Central Sprinkler Corporation manufactures and sells automatic fire sprinkler heads and valves, and it distributes components for

Question:

Central Sprinkler Corporation manufactures and sells automatic fire sprinkler heads and valves, and it distributes components for automatic sprinkler systems. Selected information from the company's 2017 financial statements show:

In late December 2015, Central Sprinkler bought back 1,237,000 shares of common stock for $11,750,000.
Required:
1. What would EPS have been in 2016 and 2017 had the company not repurchased its common shares? Assume the stock buyback occurred on December 31, 2015, and notice that the company has an October 31 fiscal year-end.
2. Compare the company's profit performance in 2017 to earlier years, and comment on this comparison.
3. The stock buyback isn't the only reason that average common shares declined from 2015 to 2016. What else do you think could have contributed to this decline in average common shares?

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...