At January 1, 2014, Morrisey Corporation Had the Following Share

question 25

Essay

At January 1, 2014, Morrisey Corporation had the following share capital. At that time no preferred dividends were in arrears: On July 1, 2014, 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, 2014, 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 2014.
b. Calculate Morrisey's total dividend payout ratio for 2014.

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Definitions:

North America

A continent entirely within the Northern Hemisphere and almost all within the Western Hemisphere, including countries such as Canada, the United States, and Mexico.

Atlantic Slave Trade

The transatlantic trading of African slaves by European traders, mainly to the Americas from the 16th to 19th centuries, part of the global slave trade.

Rhode Island

The smallest U.S. state by area, located in the New England region, known for its sandy shores and maritime history.

Whale Oil

An oil obtained from the blubber of whales that was used historically as fuel for lamps, in soapmaking, and as a lubricant.