On January 1, the company had 200,000 common shares outstanding. On April 1, the company issued 60,000

Question:

On January 1, the company had 200,000 common shares outstanding. On April 1, the company issued 60,000 additional shares. On August 1, the company performed a 2-for-1 stock split. The company also had 20,000 shares of 8%, $50 par preferred stock outstanding throughout the year. The company declared the required preferred during the year. Net income for the year was $300,000. Compute basic earnings per share.
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...