Reference no: EM132042078
Question - At January 1, 2010, Cameron Company's outstanding shares included the following.
280,000 shares of $50 par value, 7% cumulative preferred stock
800,000 shares of $1 par value common stock
Net income for 2010 was $2,830,000. No cash dividends were declared or paid during 2010. On February 15, 2011, however, all preferred dividends in arrears were paid, together with a 5% stock dividend on common shares. There were no dividends in arrears prior to 2010.
On April 1, 2010, 450,000 shares of common stock were sold for $10 per share, and on October 1, 2010, 110,000 shares of common stock were purchased for $20 per share and held as treasury stock.
Compute earnings per share for 2010. Assume that financial statements for 2010 were issued in March 2011.
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