At January 1, 2013, Karpo Corporation had the following share capital: On July 1, 2013, the board of directors declared and paid a 10% common stock dividend. On October 1, 2013, the company sold an additional 20,000 common shares for proceeds of $280,000. The corporation earned $150,000 during the year and declared $30,000 in dividends to preferred shareholders.
-Assuming no dividends were paid in 2013, earnings per share for 2013 would be
A) $7.74.
B) $8.39.
C) $5.00.
D) $9.68.

Question

At January 1, 2013, Karpo Corporation had the following share capital:  On July 1, 2013, the board of directors declared and paid a 10% common stock dividend. On October 1, 2013, the company sold an additional 20,000 common shares for proceeds of $280,000. The corporation earned $150,000 during the year and declared $30,000 in dividends to preferred shareholders.
-Assuming no dividends were paid in 2013, earnings per share for 2013 would be
A) $7.74. 
B) $8.39. 
C) $5.00. 
D) $9.68.

Quizplus · Accepted Answer

The Answer of At January 1, 2013, Karpo Corporation had the following share capital:  On July 1, 2013, the board of directors declared and paid a 10% common stock dividend. On October 1, 2013, the company sold an additional 20,000 common shares for proceeds of $280,000. The corporation earned $150,000 during the year and declared $30,000 in dividends to preferred shareholders.
-Assuming no dividends were paid in 2013, earnings per share for 2013 would be
A) $7.74. 
B) $8.39. 
C) $5.00. 
D) $9.68.

At January 1, 2013, Karpo Corporation Had the Following Share