Conquistitor Ltd. reported net income of $750,000 for the year ended July 31, 2020. During the year, the company also declared and paid dividends of $45,000 on the company's preferred shares. At the beginning of the year, Conquistitor had 350,000 common shares outstanding. No shares were issued or repurchased during the year.
Instructions
a) Calculate the basic earnings per-share ratio.
b) Assume 200,000 common shares were issued on Aug 1, 2019 and an additional 150,000 common shares issued on April 1, 2020. Calculate the basic earnings per-share ratio.

Question

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The Answer of Conquistitor Ltd. reported net income of $750,000 for the year ended July 31, 2020. During the year, the company also declared and paid dividends of $45,000 on the company's preferred shares. At the beginning of the year, Conquistitor had 350,000 common shares outstanding. No shares were issued or repurchased during the year.
Instructions
a) Calculate the basic earnings per-share ratio.
b) Assume 200,000 common shares were issued on Aug 1, 2019 and an additional 150,000 common shares issued on April 1, 2020. Calculate the basic earnings per-share ratio.