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Mangey Corp In Addition, the Company Issued 3,000, $ 2, Cumulative Preferred

Question 68

Essay

Mangey Corp. had the following activity related to its common shares for the year ending December 31, 2020.  Shares outstanding, Jan 1 150,0002-for-1 stock split, Apr 1 150,000 Shares issued, Jul 1 20,000 Shares repurchased, Oct 1 (50,000) Shares issued, Dec 31* 10,000 Ending balance, Dec31 280,000 Net Income $476,000\begin{array}{lr}\text { Shares outstanding, Jan 1 } & 150,000 \\2 \text {-for-1 stock split, Apr 1 } & 150,000 \\\text { Shares issued, Jul 1 } & 20,000 \\\text { Shares repurchased, Oct 1 } & (50,000) \\\text { Shares issued, Dec 31* } & 10,000 \\\text { Ending balance, Dec31 } & 280,000 \\\text { Net Income } & \$ 476,000\end{array} In addition, the company issued 3,000, $ 2, cumulative preferred shares for $ 300,000, however,
dividends were not declared during 2020.
Instructions
a) Calculate the weighted average number of shares.
b) Calculate basic EPS.
c) Calculate full diluted EPS.

Correct Answer:

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a) Weighted average number of shares:
(1...

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