Given the following year-end information, compute Greenwood Corporation's basic and diluted earnings per share. Net income,

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Given the following year-end information, compute Greenwood Corporation's basic and diluted earnings per share.

• Net income, $15,000

• The income tax rate, 30%

• 4,000 shares of common stock were outstanding the entire year.

• 500 shares of 10%, $50 par (and issuance price) convertible preferred stock were outstanding the entire year.

Dividends of $2,500 were declared on this stock during the year. Each share of preferred stock is convertible into 5 shares of common stock.

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...
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Intermediate Accounting Reporting and Analysis

ISBN: 978-1111822361

1st edition

Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach

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