Anderson Steel Company began 2024 with 440,000 shares of common stock outstanding. On March 31, 2024,...

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Anderson Steel Company began 2024 with 440,000 shares of common stock outstanding. On March 31, 2024, 200,000 new shares were sold at a price of $40 per share. The market price has risen steadily since that time to a high of $45 per share at December 31. No other changes in shares occurred during 2024, and no securities are outstanding that can become common stock. However, there are two agreements with officers of the company for future issuance of common stock. Both agreements relate to compensation arrangements reached in 2023. The first agreement grants to the company president a right to 20,000 shares of stock each year the closing market price is at least $43. The agreement begins in 2025 and expires in 2028. The second agreement grants to the controller a right to 25,000 shares of stock if she is still with the firm at the end of 2032. Net income for 2024 was $3,000,000. Required: Compute Anderson Steel Company's basic and diluted earnings per share for the year ended December 31, 2024. Note: Do not round intermediate calculations. Enter your answers in thousands (i.e., 10,000 should be entered as 10). Basic Diluted Numerator Denominator = Earnings per Share = = Anderson Steel Company began 2024 with 440,000 shares of common stock outstanding. On March 31, 2024, 200,000 new shares were sold at a price of $40 per share. The market price has risen steadily since that time to a high of $45 per share at December 31. No other changes in shares occurred during 2024, and no securities are outstanding that can become common stock. However, there are two agreements with officers of the company for future issuance of common stock. Both agreements relate to compensation arrangements reached in 2023. The first agreement grants to the company president a right to 20,000 shares of stock each year the closing market price is at least $43. The agreement begins in 2025 and expires in 2028. The second agreement grants to the controller a right to 25,000 shares of stock if she is still with the firm at the end of 2032. Net income for 2024 was $3,000,000. Required: Compute Anderson Steel Company's basic and diluted earnings per share for the year ended December 31, 2024. Note: Do not round intermediate calculations. Enter your answers in thousands (i.e., 10,000 should be entered as 10). Basic Diluted Numerator Denominator = Earnings per Share = =

Answer rating: 100% (QA)

To compute Anderson Steel Companys basic and diluted earnings per share EPS for the year ended Decem... View the full answer