A Basic EPS Calculation (2)
For the year ended 31 December 2009, Angler Products had net income of $2,500,000. The company declared and paid $200,000 of dividends on preferred stock. The company also had the following common stock share information:
|
Shares outstanding on 1 January 2009 |
1,000,000 |
|
Shares issued on 1 April 2009 |
200,000 |
|
Shares repurchased (treasury shares) on 1 October 2009 |
(100,000) |
|
Shares outstanding on 31 December 2009 |
1,100,000 |
1. What is the company’s weighted average number of shares outstanding?
2. What is the company’s basic EPS?