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?