The Alford Group had 202,000 shares of common stock outstanding at January 1, 20

Question

The Alford Group had 202,000 shares of common stock outstanding at January 1, 2011. The following activities affected common shares during the year. There are no potential common shares outstanding.

2011
Feb. 28 Purchased 6,000 shares of treasury stock.
Oct. 31 Sold the treasury shares purchased on February 28.
Nov. 30 Issued 24,000 new shares.
Dec. 31 Net income for 2011 is $400,000.

2012
Jan. 15 Declared and issued a 2-for-1 stock split.
Dec. 31 Net income for 2012 is $400,000.



Determine the 2011 EPS. (Round your answer to 2 decimal places. Omit the "$" sign in your response

Explanation / Answer

Jan 1,2011 shares O/S is 202,000 Dec 31, 2011 shares O/S is 226,000 Average is 214,000 Net income is 400,000. So EPS is 400,000/214,000= 1.87 per share

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