Capital Consulting Company Had 400,000 Shares of Common Stock Outstanding

question 118

Essay

Capital Consulting Company had 400,000 shares of common stock outstanding on December 31, 2013. On that date, there were also 5,000 shares of $100 par, 6% noncumulative preferred stock outstanding. On March 1, 2013, the company's common stock split 3-for-1. On December 15, 2013, a preferred dividend was declared and paid in the amount of $25,000. Net income for 2013 was $3,000,000.
Required:
Compute basic earnings per share (rounded to 2 decimal places) for the year ended December 31, 2013.

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Definitions:

Cultural Group

A collection of individuals who share common cultural, religious, or ethnic backgrounds.

Gender Prejudice

Preconceived opinions or judgments about people based on their gender, often resulting in discrimination or bias.

Organizational Commitment

The level of loyalty, involvement, and attachment a member has towards their organization, influencing their willingness to continue employment.

Diversity

The presence of differences within a given setting, including race, ethnicity, gender, age, and other attributes.