Reference no: EM132597409

Questions -

Q1- Copper Grill Restaurant Corporation wholesales ovens and ranges to restaurants throughout the Southwest. Copper Grill Restaurant Corporation, which had 51,000 shares of common stock outstanding, declared a 2-for-1 stock split.

a- What will be the number of shares outstanding after the split?

b- If the common stock had a market price of $108 per share before the stock split, what would be an approximate market price per share after the split?

Q2- Junkyard Arts, Inc., had earnings of $315,100 for the year. The company had 26,000 shares of common stock outstanding during the year and issued 2,700 shares of $150 par value preferred stock. The preferred stock has a dividend of $5 per share. There were no transactions in either common or preferred stock during the year. Determine the basic earnings per share for Junkyard Arts for the year. Round answer to two decimal places.

Q3- Dakota Inc. and Jersey & Company are two large companies that manufacture and sell equipment used in the construction, mining, agricultural, and forestry industries. The companies reported the following data (in millions) for two recent years:

Dakota Jersey

Year 2 Year 1 Year 2 Year 1

Net income $2,177 $3,705 $1,900 $3,167

Average number of common shares outstanding 594 599 334 363

a- Determine the earnings per share in Year 2 and Year 1 for each company. Round your answers to two decimal places.

b- Evaluate the relative profitability of the two companies.