A Company Had the Following Stockholders' Equity Information Available at Year-End

question 155

Essay

A company had the following stockholders' equity information available at year-end.
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- Issued 11,000 shares of $2.00 par value common stock for $12.00 per share.
- Issued 5,000 shares of $50 par value 6% preferred stock for $70 per share.
- Purchased 1,000 shares of previously issued common stock for $15.00 per share.
- Reported net income of $200,000.
- Declared and paid the preferred stock dividend.
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Calculate the earnings per share for the current year.

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Definitions:

Social Contract Ethical Theory

A theory in philosophy that posits the legitimacy of authority of the state over the individual is grounded in a contractual agreement among individuals in a society.

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A way of life or behavior that is conducted according to principles of what is morally right or acceptable, often involving conscious choices that promote sustainability and minimize harm to others.

Ethic Of Responsibility

A moral philosophy emphasizing the importance of taking responsibility for the consequences of one's actions, particularly in relation to others and society.

Laws

The system of rules which a particular country or community recognizes as regulating the actions of its members and which it may enforce by the imposition of penalties.