On December 31, 2023, Dow Steel Corporation had 690,000 shares of common stock and 39,000 shares of 9%, noncumulative, nonconvertible preferred stock issued and outstanding. • Dow issued a 5% common stock dividend on May 15 and paid cash dividends of $490,000 and $78,000 to common and preferred shareholders, respectively, on December 15, 2024. • On February 28, 2024, Dow sold 56,000 common shares. •In keeping with its long-term share repurchase plan, 5,000 shares were retired on July 1. • Dow's net income for the year ended December 31, 2024, was $2,550,000. The income tax rate is 25%. Required: Compute Dow's earnings per share for the year ended December 31, 2024. Note: Do not round intermediate calculations. Except for per share amounts, enter your answers in thousands (i.e., 10,000 should be entered as 10). Round "Earnings per share" answer to 2 decimal places. Numerator Denominator Earnings per share

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
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On December 31, 2023, Dow Steel Corporation had 690,000 shares of common stock and 39,000 shares of 9%, noncumulative,
nonconvertible preferred stock issued and outstanding.
• Dow issued a 5% common stock dividend on May 15 and paid cash dividends of $490,000 and $78,000 to common and preferred
shareholders, respectively, on December 15, 2024.
• On February 28, 2024, Dow sold 56,000 common shares.
•In keeping with its long-term share repurchase plan, 5,000 shares were retired on July 1.
•
Dow's net income for the year ended December 31, 2024, was $2,550,000. The income tax rate is 25%.
Required:
Compute Dow's earnings per share for the year ended December 31, 2024.
Note: Do not round intermediate calculations. Except for per share amounts, enter your answers in thousands (i.e., 10,000 should be
entered as 10). Round "Earnings per share" answer to 2 decimal places.
Numerator
Denominator
Earnings per
share
Transcribed Image Text:On December 31, 2023, Dow Steel Corporation had 690,000 shares of common stock and 39,000 shares of 9%, noncumulative, nonconvertible preferred stock issued and outstanding. • Dow issued a 5% common stock dividend on May 15 and paid cash dividends of $490,000 and $78,000 to common and preferred shareholders, respectively, on December 15, 2024. • On February 28, 2024, Dow sold 56,000 common shares. •In keeping with its long-term share repurchase plan, 5,000 shares were retired on July 1. • Dow's net income for the year ended December 31, 2024, was $2,550,000. The income tax rate is 25%. Required: Compute Dow's earnings per share for the year ended December 31, 2024. Note: Do not round intermediate calculations. Except for per share amounts, enter your answers in thousands (i.e., 10,000 should be entered as 10). Round "Earnings per share" answer to 2 decimal places. Numerator Denominator Earnings per share
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