Answered

Welcome to Westonci.ca, the place where your questions find answers from a community of knowledgeable experts. Join our Q&A platform to connect with experts dedicated to providing precise answers to your questions in different areas. Experience the ease of finding precise answers to your questions from a knowledgeable community of experts.

Atlas Corporation reported the following earnings per share information in its current annual report. The company has only one class of stock outstanding.
Net income $7,121
Dividends to common shareholders $2,033
Weighted average common shares outstanding 4,221
Weighted average dilutive shares 4,305
Basic and diluted earnings per share were, respectively:____.
a. $1.21 and $1.18.b. $2.17 and $2.13.
c. $1.69 and $1.65.d. $1.69 and $1.18.
e. none of these are correct.

Sagot :

abiolataiwo2015

Answer:

c. $1.69 and $1.65

Explanation:

Calculation to determine Basic EPS

Using this formula

Basic EPS =Net income/Weighted average common shares outstanding

Let plug in the formula

Basic EPS = $7,121 / 4,221

Basic EPS = $1.69

Calculation for Diluted EPS

Using this formula

Diluted EPS=Net income/Weighted average dilutive shares

Let plug in the formula

Diluted EPS = $7,121 / 4,305

Diluted EPS = $1.65

Therefore Basic and diluted earnings per share were, respectively:$1.69 and $1.65

We appreciate your visit. Our platform is always here to offer accurate and reliable answers. Return anytime. We hope this was helpful. Please come back whenever you need more information or answers to your queries. Your questions are important to us at Westonci.ca. Visit again for expert answers and reliable information.