Question

The following information is available for Concord Corporation and Skysong, Inc.: (in millions) Concord Corporation Skysong, Inc. 2022 2021 2022 2021 Preferred dividends 26 10 0 31 Net income 535 475 485 555Shares outstanding at the end of the year 210 180 150 190 Shares outstanding at the beginning of the year 180 150 190 225 Based on this information, what is the amount of Concord Corporation earnings per share (rounded to two decimals) for 2022?

Answer 1

Answer:

Earnings per share of Concord Corporation for the year 2022 = $2.83

Explanation:

As for the information provided we have,

Earning per share to be computed for Concord Corporation for 2022

Note: Earning per share is computed for a period, and not for the particular date as it relates to the return on investment.

Therefore, Earnings per share for equity = Earnings for equity for the year concerned/Average number of shares outstanding

Average number of shares outstanding = (Opening equity + Closing Equity)/2

Equity shares in the beginning of 2022 = 180 million

Since no information for losing shares given thus, assumed same as of beginning.

Net income for equity = Net income - Pref dividend = $535 - $26 = $509 million

Earnings per share = $509 million/180 million

= $2.83 per share