Viceroy Ltd has a December 31 year-end. Its ledger account for Common Shares (Class A...
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Viceroy Ltd has a December 31 year-end. Its ledger account for Common Shares (Class A voting) showed the following information (dollars amounts are in thousands): Opening Balance Jan1 =400,000 shares Shares issued June 30=200,000 Shares issued September 30=50,400 Net Income for the Year =$2,000,000 Preferred Shares (Class B Non Voting Cumulative) =50,000 shares ($600) Preferred Share Dividend entitlement for the year $129,000 Hint: check EPS formula in the chapter of Financial Statement Analysis Required 1: What is the Basic Earnings Per Share that Viceroy will report this year? Hint: when number of shares change during the term, a simple average does not apply, instead use the weighted average number of common shares. \$ Required 2: The weighted average number of common shares for the year is: Required 3: The total earnings considered in the EPS formula for the year is: $
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