On december 312010 dow steel corporation had 600000 shares

Reference no: EM13598824

On December 31,2010, Dow Steel Corporation had 600,000 shares of common stock and 300,000 shares of 8%, noncumulative, nonconvertible preferred stock issued and outstanding. Dow issued a 4% common stock dividend on May 15 and paid cash dividends of $400,000 and $75,000 to common and preferred shareholders, respectively, on December 15,2011.

On February 28,2011, Dow sold 60,000 common shares. In keeping with its long-term share repurchase plan, 2,000 shares were retired on July 1. Dow's net income for the year ended December 31,2011, was $2,100,000. The income tax rate is 40%.

As part of an incentive compensation plan. Dow granted incentive stock options to division managers at December 31 of the current and each of the previous 2 years. Each option permits it holder to buy one share of common stock at an exercise price equal to market value at the date of grant and can be exercised one year from that date. Information concerning the number of options granted and common share prices follows: Date granted: 12/31/09 options granted: 8,000 share price: $24, date granted: 12/31/10 options granted: 3,000 share price: $33, Date granted :12/31/11 Options granted: 6,500 share price:$32.

Required: Compute Dow's earnings per share for the year ended December 31,2011

Reference no: EM13598824

Questions Cloud

You have retired a long and successful career as a business : you have retired a long and successful career as a business executive and now spend a good portion of your time

Design payroll and personnel cycle tests of controls and : would the following be 1 a test of control or substantive test of transaction or 2 a test of details of balance. 1.

Ltpgtandretti company has a single product called a dak the : ltpgtandretti company has a single product called a dak. the company normally produces and sells 60000 daks each year

Superior developers sells lots for residential development : superior developers sells lots for residential development. when lots are sold superior recognizes income for

On december 312010 dow steel corporation had 600000 shares : on december 312010 dow steel corporation had 600000 shares of common stock and 300000 shares of 8 noncumulative

On january 1 2010 metco inc had issued an outstanding : on january 1 2010 metco inc. had issued an outstanding 574600 shares of 2 par value common stock. on march 15 2010

In 2010 margaret and john murphy are married tax payers : in 2010 margaret and john murphy are married tax payers who file a joing return with agi for 25000. during the year

A company issued 5000000 of 10 10-year bonds at 93 on : a company issued 5000000 of 10 10-year bonds at 93 on december 31 2004. the bonds are callable at 102. the company uses

Maja co follows the practice of recording prepaid expenses : maja co. follows the practice of recording prepaid expenses and unearned revenues in balance sheet accounts. majas

User Account

All Pages