Question: Problem 2 (15 points); For the year ended 31 December 2019, New Style Inc. had net income of $2.5 million. The company declared and paid
Problem 2 (15 points); For the year ended 31 December 2019, New Style Inc. had net income of $2.5 million. The company declared and paid $200,000 of dividends on preferred stock. The company also had the following common stock share information: Shares outstanding on 1 January 2019 Shares issued on 1 April 2019 Shares repurchased treasury shares) on 1 October 2019 Shares outstanding on 31 December 2019 1,000,000 200,000 (100,000) 1,100,000 a. What is the company's weighted average number of shares outstanding? b. What is the company's basic EPS? c. On December 1st, 2019, a previously declared 2 for 1 stock split took effect. Each shareholder of record receives two shares in exchange for each current share that he or she owns. What is the company's basic EPS
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