Hyde Corporations capital structure at December 31, 2018, was as follows: ................................................Shares Issued and Outstanding Common stock

Question:

Hyde Corporation’s capital structure at December 31, 2018, was as follows:
................................................Shares Issued and Outstanding
Common stock ............................................100,000
Nonconvertible preferred stock .................20,000
On July 2, 2019, Hyde issued a 10% stock dividend on its common stock and paid a cash dividend of $2.00 per share on its preferred stock. Net income for the year ended December 31, 2019, was $780,000. What should be Hyde’s 2019 basic earnings per share?
a. $7.80
b. $7.09
c. $7.68
d. $6.73

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... Capital Structure
Capital structure refers to a company’s outstanding debt and equity. The capital structure is the particular combination of debt and equity used by a finance its overall operations and growth. Capital structure maximizes the market value of a... 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...

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