On January 1, 2024, Jaewoo Industries had outstanding 660,000 common shares ($1 par) that originally sold for $30 per share, and 9,000 shares of 10% cumulative preferred stock ($100 par), convertible into 90,000 common shares. • On October 1, 2024, Jaewoo sold and issued an additional 16,000 shares of common stock at $33. • At December 31, 2024, there were 25,000 Incentive stock options outstanding, issued in 2023, and exercisable after one year for 25,000 shares of common stock at an exercise price of $40. • The market price of the common stock at year-end was $58. • During the year, the price of the common shares had averaged $50. • Net Income was $800,000. The tax rate for the year was 25%. Required: Compute basic and diluted EPS for the year ended December 31, 2024. Note: Do not round Intermediate calculations. Except for per share amounts, enter your answers in thousands (1.e., 10,000 should be entered as 10). Round "Earnings per share" answer to 2 decimal places. Basic Diluted Numerator $ $ 710 800 + Denominator 664 = = Earnings per share 1.07 1.05 69 $

On January 1, 2024, Jaewoo Industries had outstanding 660,000 common shares ($1 par) that originally sold for $30 per share, and 9,000 shares of 10% cumulative preferred stock ($100 par), convertible into 90,000 common shares. • On October 1, 2024, Jaewoo sold and issued an additional 16,000 shares of common stock at $33. • At December 31, 2024, there were 25,000 Incentive stock options outstanding, issued in 2023, and exercisable after one year for 25,000 shares of common stock at an exercise price of $40. • The market price of the common stock at year-end was $58. • During the year, the price of the common shares had averaged $50. • Net Income was $800,000. The tax rate for the year was 25%. Required: Compute basic and diluted EPS for the year ended December 31, 2024. Note: Do not round Intermediate calculations. Except for per share amounts, enter your answers in thousands (1.e., 10,000 should be entered as 10). Round "Earnings per share" answer to 2 decimal places. Basic Diluted Numerator $ $ 710 800 + Denominator 664 = = Earnings per share 1.07 1.05 69 $

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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