On December 31, 2023, Nettle Corporation had 5,000, $2 preferred shares and 80,000 common shares issued. During 2024, the company completed the following share transactions: 

Apr. 1 Sold 10,000 common shares for $5,000 cash. 

Sept.30 Reacquired 5,000 common shares for $1,800 cash. 

Nettle’s profit in 2024 was $520,000. 

Instructions 

a. Calculate the weighted average number of common shares for 2024. 

b. Calculate earnings per share under each of the following independent assumptions: 

1. Preferred shares are cumulative and dividends were 

i. Declared. 

ii. Not declared. 

2. Preferred shares are noncumulative and dividends were 

i. Declared. 

ii. Not declared.