An Analyst Gathered the Following Information About a Company Whose $\$ 23.7$

question 38

Essay

An analyst gathered the following information about a company whose fiscal year end is December 31.
Net income for the year was $\$ 23.7$ million.
Preferred stock dividends of $\$ 3$ million were paid for the year.
Common stock dividends of $\$ 6$ million were paid for the year.
There were 10 million shares of common stock outstanding on January 1, 2014.
The company issued 6 million new shares of common stock on July 1, 2014.
The capital structure does not include any potentially dilutive securities.
Required:
Calculate the company's basic earnings per share for 2014.

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Definitions:

High Performing Worker

An employee who consistently exceeds the standard performance expectations and contributes significantly to the organization's success.

Fundamental Attribution Error

The tendency to overemphasize personal characteristics and ignore situational factors when judging others' behavior.

Supervisors

Individuals who oversee and manage the activities and performance of a team or department within an organization.

High-Status Employees

Workers who hold positions of authority or esteem within an organization, often having a significant impact on decisions and company culture.