Taft Corporation had after-tax income from continuing operations of $10.7 million for the year. Taft also...

  

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Taft Corporation had after-tax income from continuing operations of $10.7 million for the year. Taft also reported a $1.97 million after-tax loss on the disposal of its textile subsidiary. Taft uses a calendar-year reporting period. Taft's capital structure consists of the following. Preferred stock: 160,000 shares of $100 par, 8% cumulative nonconvertible preferred stock issued during the year. No dividends were declared in the current year. Common stock: 6,834,984 shares outstanding on January 1, $1 par. Dividends of $1 per share were declared and paid on June 30. On July 1, a three- for-one stock split was declared and the shares were issued. Required a. What type of capital structure does this company have (simple or complex)? Simple structure b. Compute required EPS amounts. c. Show the EPS presentation for financial reporting. Note: Enter the earnings per share amounts in dollars and cents, rounded to the nearest penny. Note: Use a negative sign with a loss. Income from Continuing Operations Available to Common Stockholders 9,420,000✔ $ Loss from Discontinued Operations, Net of tax $ 7,450,000 x Net Income Available to Common Stockholders $ " Weighted Avg. Common Shares Outstanding i 20,504,952✔S Weighted Avg. Common Shares Outstanding 20,504,952 = $ Weighted Avg. Common Shares Outstanding 20,504,952✔✔S Income from continuing operations Loss from discontinued operations, net of tax Net income $ Basic EPS 0x 0x 0 Per Share Per Share Per Share 0.46 0.36 0 Taft Corporation had after-tax income from continuing operations of $10.7 million for the year. Taft also reported a $1.97 million after-tax loss on the disposal of its textile subsidiary. Taft uses a calendar-year reporting period. Taft's capital structure consists of the following. Preferred stock: 160,000 shares of $100 par, 8% cumulative nonconvertible preferred stock issued during the year. No dividends were declared in the current year. Common stock: 6,834,984 shares outstanding on January 1, $1 par. Dividends of $1 per share were declared and paid on June 30. On July 1, a three- for-one stock split was declared and the shares were issued. Required a. What type of capital structure does this company have (simple or complex)? Simple structure b. Compute required EPS amounts. c. Show the EPS presentation for financial reporting. Note: Enter the earnings per share amounts in dollars and cents, rounded to the nearest penny. Note: Use a negative sign with a loss. Income from Continuing Operations Available to Common Stockholders 9,420,000✔ $ Loss from Discontinued Operations, Net of tax $ 7,450,000 x Net Income Available to Common Stockholders $ " Weighted Avg. Common Shares Outstanding i 20,504,952✔S Weighted Avg. Common Shares Outstanding 20,504,952 = $ Weighted Avg. Common Shares Outstanding 20,504,952✔✔S Income from continuing operations Loss from discontinued operations, net of tax Net income $ Basic EPS 0x 0x 0 Per Share Per Share Per Share 0.46 0.36 0

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