At January 1, 2021, Morrisey Corporation Had the Following Share

question 6

Essay

At January 1, 2021, Morrisey Corporation had the following share capital. At that time no preferred dividends were in arrears: On July 1, 2021, the board of directors declared and paid a $ 1.50 cash dividend on common shares, and the full annual dividend to which the preferred shareholders were entitled. On October 1, 2021, Morrisey sold an additional 80,000 common shares for proceeds of $ 280,000. The corporation earned $ 650,000 during the year.
Instructions
a) Calculate Morrisey's earnings per share for 2021.
b) Calculate Morrisey's total dividend payout ratio for 2021.

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Definitions:

Service Departments

Divisions within a company that support other departments but do not directly contribute to revenue generation, such as maintenance and HR.

Operating Departments

Departments within an organization directly involved in its primary revenue-generating activities.

Expense Allocation

The process of assigning indirect costs to different departments, products, or other segments of a business.

Market Values

Market Values refer to the current price or value of assets, goods, or services determined through supply and demand forces in the marketplace.