The capital structure of AMEX Products at December 31, 20X5, included 20,000 shares of $1.25 preferred stock

Question:

The capital structure of AMEX Products at December 31, 20X5, included 20,000 shares of $1.25 preferred stock and 44,000 shares of common stock. During 20X6, AMEX issued common stock and ended the year with 58,000 shares. The average number of common shares outstanding for the year was 51,000. Income from continuing operations during 20X6 was $81,100. The company discontinued a segment of the business at a gain of $6,630, and an extraordinary item generated a loss of $16,000. All amounts are after income tax.

Required

1. Compute AMEX's earnings per share. Start with income from continuing operations.

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...