Compute dow earnings per share for the year ended

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Reference no: EM131872224

On December 31, 2015, Dow Steel Corporation had 770,000 shares of common stock and 47,000 shares of 9%, noncumulative, nonconvertible preferred stock issued and outstanding. Dow issued a 5% common stock dividend on May 15 and paid cash dividends of $570,000 and $86,000 to common and preferred shareholders, respectively, on December 15, 2016. On February 28, 2016, Dow sold 68,000 common shares. In keeping with its long-term share repurchase plan, 4,000 shares were retired on July 1. Dow's net income for the year ended December 31, 2016, was $2,950,000. The income tax rate is 40%. Required: Compute Dow's earnings per share for the year ended December 31, 2016. (Do not round intermediate calculations. Enter your answers in thousands.)

Numerator = 2,864

Denominator =

Earnings per share =

Reference no: EM131872224

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