At December 31, 2016, Sage Corporation had the following stock outstanding. 10%

Question

At December 31, 2016, Sage Corporation had the following stock outstanding. 10% cumulative preferred stock, $109 par, 107,918 shares $10,791,800 Common stock, $5 par, 4,099,360 shares 20,496,800 During 2017, Sage did not issue any additional common stock. The following also occurred during 2017 Income from continuing operations before taxes Discontinued operations (loss before taxes) Preferred dividends declared $24,065,000 $3,456,200 $1,079,180 $2,317,300 Common dividends declared Effective tax rate 35.9% Compute earnings per share data as it should appear in the 2017 income statement of Sage Corporation.( Earnings Per Share Income from Continuing Operations Discontinued Operations (0.66 Net Income (Loss) 1.13 Click if you would like to Show Work for this question: Open Show Work ch 3 Time Value of.. .afch2 Financial Stat...pdf Ch2 Financial Stat...pdf re to search

Explanation / Answer

Solution:

Calculation of Earnings per share

Income from continuing Operations $24,065,000 Discontinued operations ($3,456,200) Net income/(loss) $20,608,800 Tax@35% ($7,213,080) Net income after tax $13,395,720 Preferred dividend ($1,079,180) Earnings for equity $12,316,540 ÷ no. Of common shares 4,099,360 Earnings per share $3

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