Question on basic earnings per share
The following data pertains to the McGuire Company:
Net income equals $15,000
5,000 shares of common stock issued on January 1st
10 percent stock dividend issued on June 1st
1000 shares of common stock were repurchased on July 1st
1000 shares of 10 percent, par $100 preferred stock each convertible into 8 shares of common were outstanding the whole year
What is the company’s basic earnings per share (EPS)?
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