On January 1, 2016, Samuel Company Had 21,000 Shares of Common

question 56

Multiple Choice

On January 1, 2016, Samuel Company had 21,000 shares of common stock outstanding and issued an additional 4,500 shares on May 1. The company declared and paid a cash dividend of $45,000 and earned $375,000 net income. What was the basic earnings per share for the year?

• A) $15.63
• B) $13.75
• C) $17.86
• D) $12.50

---

Definitions:

Newly Issued Shares

Shares that have been made available for sale for the first time, representing a portion of the corporation's equity newly offered to investors.

Share Dividend

A dividend payment made in the form of additional shares rather than cash payout to shareholders.