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Question: For the year ended December 31, 2016, Norstar Industries reported net income of $925,000. At January 1, 2016, the company had 800,000 common shares outstanding. The following changes in the number of shares occurred during 2016:
Apr. 30 Sold 45,000 shares in a public offering.
May 24 Declared and distributed a 5% stock dividend.
June 1 Issued 42,000 shares as part of the consideration for the purchase of assets from a subsidiary.
Required: Compute Norstar's earnings per share for the year ended December 31, 2016. (Enter your answers in thousands.)
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