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You are computing annual earnings per share and required disclosures for Fencing based on​ company-provided information....

You are computing annual earnings per share and required disclosures for

Fencing based on​ company-provided information. Net income is$4,570,000.

The​ weighted-average number of shares is 2,740,000.

The​ year-end balance of outstanding shares is also2,740,000.

There are options outstanding all year to acquire1,413,750

shares of common stock at$24

per share. The average price of the​ company's common stock is$39

per share. The firm has98,000

shares of$49

par value​ nonconvertible, noncumulative preferred stock outstanding as of the beginning of the year. The dividend rate is1.10

per share. The board of directors declared the annual dividend. The company is subject to a30%

tax rate.

business   accounting   
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Answer #1
Net Income 4570000
Less Tax 1371000
Profit after tax 3199000
less dividend payable to preference share holderss 107800
Earningss attributable to Equity share holders - A 3091200
weighted average no of shares outstanding - B 2740000
Earnings per share A/B 1.12817518
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