Eps simple capital structure

Reference no: EM1336638

On January 1, 2010, Bio Industries had stock outstanding as follows. 8% Noncumulative preferred stock, $100 par value, issued and outstanding 250,000 shares $25,000,000 Common stock, $1 par value, issued and outstanding 600,000 shares 600,000 To acquire the net assets of three smaller companies, Bio issued an additional 600,000 common shares.

The acquisitions took place as follows.

Date of Acquisition Shares Issued

MicroBio February 1, 2010 200,000

BioTech June 1, 2010 80,000

SuperBio November 1, 2010 320,000

On December 31, 2010, Bio recorded net income of $9,862,000 before taxes. No dividends on the common or preferred were declared during 2010.

Assuming a 40% tax rate, compute the earnings per share data that should appear on the financial statements of Bio Industries as of December 31, 2010.

Reference no: EM1336638

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