Reference no: EM133077201

Question - Adun Co. had 60,000 ordinary shares outstanding on January 1, 2020. On March 1, the corporation issued an additional 4,500 shares. On September 1, the corporation declared and issued a 3-for-1 share split. On December 1, the corporation purchased on the market 3,600 of its own outstanding shares and retired them.

Required - Compute the weighted average number of shares to be used in computing earnings per share for 2020.

Using the weighted average number of shares you calculated in requirement (a) above, assume that the corporation declared a dividend on its preferred stock for the amount of £5,000 for the year 2020 and net income for the year was £33,190.

Required - Calculate Adun Co.'s basic Earnings Per Share for the year 2020.

How would the 3-for-1 share split declared and issued affect the total shareholders' equity for the corporation? (No calculations required)

Briefly explain the difference between a simple corporate capital structure and a complex corporate capital structure and how would EPS differ under both structures (No calculations required).