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E16-19B (EPS: Simple Capital Structure) Selected financial information of Gray Plains Inc. for the current year follows. Income before extraordinary item $ 53,500,000 Extraordinary gain, net of applicable income tax 6,250,000 Net income 59,750,000 Retaine

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E16-19B (EPS: Simple Capital Structure) Selected financial information of Gray Plains Inc. for the current year follows.;Income before extraordinary item $ 53,500,000;Extraordinary gain, net of applicable;income tax 6,250,000;Net income 59,750,000;Retained earnings at the beginning of the year 268,450,000;328,200,000;Dividends declared;On preferred stock $ 2,000,000;On common stock?$1 per share 21,500,000 23,500,000;Retained earnings at the end of the year $304,700,000;Note 1. During the year, Gray Plains Inc. took advantage of the current interest rates and called $125 million of long-term debt. The early retirement resulted in a gain of $10,000,000 before applicable taxes of $3,750,000.;At the end of the current year, Gray Plains Inc. has outstanding 21,500,000 shares of $1 par common stock and 200,000 shares of 10%, $100 par preferred. There were no changes in shares outstanding during the year.;Instructions;Compute the earnings per share on common stock for the current year as it should be reported to stockholders.

 

Paper#78636 | Written in 18-Jul-2015

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