Is 17. correct? Exam #3 (CH 19-21) instructions help KQuestion 3 (of 24) | Save

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Is 17. correct? Exam #3 (CH 19-21) instructions help KQuestion 3 (of 24) | Save & Exit | | Submit 3. 1 value: 10.00 points Hardaway Fixtures' balance sheet at December 31, 2015, included the following Shares issued and outstanding: Common stock, $1 par $940,000 15,000 Nonconvertible preferred stock, $50 par On July 21, 2016, Hardaway issued a 25% stock dividend on its common stock. On December 12 it paid $40,000 cash dividends on the preferred stock. Net income for the year ended December 31, 2016, was $3,400,000 Required: Compute Hardaway's earnings per share for the year ended December 31, 2016. (Enter your answers in thousands.) Númerator Earnings per Share

Explanation / Answer

Number of shares outstanding = 940000+ (940000*.25) = 940000+235000= 1175000

EPS =Net income /Number of hsares

          = 3,400,000 / 1,175,000 = $ 2.89 per share

2)compensation expense = 1,000,000 * 6 = 6,000,000

correct optioon is "D"

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