Calculating EPS: Simple Capital Structure
On January Americana Inc. had shares of common stock issued and outstanding. Americana Inc. issued a stock dividend on July On October the
company purchased shares of its common stock for the treasury, and declared a for stock split on December American also had shares of
$ par value cumulative preferred stock outstanding. No dividends were declared on either the preferred or the common stock during the prior year or current year.
Net income for the year was $
Required
Note: In the following calculations, enter the earnings per share amounts in dollars and cents, rounded to the nearest penny.
a Compute the required EPS amount.
b Compute the required EPS amount assuming instead that Americana Inc. declared and paid the current year preferred dividend and one year of dividends in
arrears in December.
c Compute the required EPS amount assuming instead that the preferred stock is noncumulative.
