Calculate the weighted average number of shares

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Q1. Cent Inc. had 110,000 common shares on January 1, 2021. On March 1, 40,000 shares were issued. On August 1, 20,000 shares were repurchased. Calculate the weighted average number of shares for 2021.

a. 150,000

b. 135,000

c. 135,000

d. 120,000

e. 110,000

Q2. In 2021, Nap Inc. reported net income of $330,000, and did not declare any dividends. Nap Inc. has 11% cumulative preferred shares in the amount of $200,000 on its balance sheet. In the past, the company typically paid out $49,500 common dividends every year. During 2021, Nap Inc. had a weighted average of 190,000 common shares outstanding. Calculate Nap Inc.'s 2021 earnings per share.

a. $1.74

b. $1.48

c. $1.62

d. $1.36

e. $0.68

Reference no: EM132973295

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