Computing earnings per share
Course:- Finance Basics
Reference No.:- EM1328930

Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Finance Basics

Rockwell paper company had earnings after taxes of $580,000 in the year 2003 with 400,000 shares of stock outstanding. On January 1, 2004, the firm issued 35,000 new shares. Because of the proceeds from these new shares and other operating improvements. earnings after taxes increased by 25 percent.

a) Compute earnings per share for the year 2003.

b) Compute earnings per share for the year 2004.

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Finance Basics) Materials
An all equity plan (PLAN 1) and a levered plan (PLAN 2). Under plan 1 the company would have 200,000 shares of stock outstanding. What is the break even EBIT?
ow would you explain the use of TVM in business? What considerations are made when calculating TVM? How can you use TVM to create your own, or someone else's retirement plan
Assume that the dollar is presently weak and is expected to strengthen over time. How will these expectations affect the tendency of U.S. investors to invest in foreign securi
Shopko issues $185,000 of 12 percent, three-year bonds dated January 1, 2009, that pay interest semiannually on June 30 and December 31. They are issued at $189,620.
Evaluate the impact of global financial markets on U.S. financial market performance over the past three years and suggest which foreign market has had the most significant
A firm's balance sheet shows current assets of $410, net fixed assets of $685, long-term debt of $320, and owners' equity of $590. What is the value of the firm's current li
The study of finance introduces concepts typically related to cash flows versus the income and expense applications found in an accounting course. The finance manager is abl
Calculate the effective (after-tax) cost of debt for Wallace Clinic, a for-profit healthcare provider, assuming that the interest rate set on its debt is 11 percent and its ta