Youpa Co. had 100,000 ordinary shares outstanding on January 1, 2020. On March 1, the corporation...

 

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Youpa Co. had 100,000 ordinary shares outstanding on January 1, 2020. On March 1, the corporation issued an additional 20,000 shares. On September 1, the corporation declared and issued a 30% share dividend. On December 1, the corporation purchased on the market 20,000 of its own outstanding shares and retired them. Required: a. Compute the weighted average number of shares to be used in computing earnings per share for 2020. (8 marks) b. Using the weighted average number of shares you calculated in requirement (a) above, assume that the corporation declared a dividend on its preferred shares for the amount of £100,000 for the year 2020 and net income for the year was £587,500. Calculate XYZ Co.'s basic Earnings Per Share for the year 2020. (7 marks) Youpa Co. had 100,000 ordinary shares outstanding on January 1, 2020. On March 1, the corporation issued an additional 20,000 shares. On September 1, the corporation declared and issued a 30% share dividend. On December 1, the corporation purchased on the market 20,000 of its own outstanding shares and retired them. Required: a. Compute the weighted average number of shares to be used in computing earnings per share for 2020. (8 marks) b. Using the weighted average number of shares you calculated in requirement (a) above, assume that the corporation declared a dividend on its preferred shares for the amount of £100,000 for the year 2020 and net income for the year was £587,500. Calculate XYZ Co.'s basic Earnings Per Share for the year 2020. (7 marks)

Answer rating: 100% (QA)

Calculation of Weighted average Shares Date Particulars Shares Os Shares Period Weight Weight... View the full answer