You Are Given the Following Information About KER Ltd

question 151

Essay

You are given the following information about KER Ltd.:
30,000 common shares outstanding on January 1, 2012
5,000 preferred shares, no-par, $1.30 (cumulative, nonconvertible)outstanding on January 1 2,000 shares sold on March 1, 2012
1,000 shares sold on September 1, 2012
2 for 1 Stock split recorded on October 1, 2012 Net Income for the year $340,000
Required:
Calculated the basic EPS.

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Definitions:

Least-Cost

A method or strategy that involves choosing the option that minimizes the total costs of achieving a particular objective.

Pure Competition

A market structure characterized by a large number of small firms, free entry and exit, and a product that is considered perfectly homogeneous, leading to firms being price takers.

Average Total Cost

The total cost of production divided by the quantity produced, representing the per unit cost of production.

Industry Supply

The total amount of a product or service that is available for purchase within an industry.