Solution-Calculate the dividend paid to preferred

Calculate the dividend paid to preferred stockholders

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Reference no: EM133121010

Question - Assume that the following data relative to Kane Company for 2015 is available:

Net Income $2,845,000

Transactions in Common Shares

Jan. 1, 2015, Beginning number of shares 972,000

Mar. 1, 2015, Purchase of treasury shares 86,400

August 1, 2015 Stock Dividend of 37%

December 1, 2015 Issuance of new shares 93,000

6 % Cumulative Convertible Preferred Stock

Sold at par, convertible into 114,000 shares of common (already adjusted for stock dividend). $725,000 Stock Options 24,000 exercisable at the option price of $25 per share. Average market price in 2015 was $34 (market price and option price adjusted for stock dividend)

Required -

a. Calculate the dividend paid to preferred stockholders.

b. Calculate the weighted-average shares outstanding during the year.

c. Compute the basic earnings per share (Round answer to nearest penny).

d. Compute the diluted earnings per share (Round answer to nearest penny).

Reference no: EM133121010

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Calculate the dividend paid to preferred stockholders

Reference no: EM133121010

Reference no: EM133121010

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