At December 31, 2016, the balance sheet of Darwin Corporation included 8 million common shares and 4 million nonconvertible preferred shares. On July 1, 2017, Darwin issued a 5 for 4 stock split on its common shares and paid $10 million cash dividends on the preferred stock. Net income for the year ended December 31, 2017, was $40 million. Darwin’s 2017 EPS should be:

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At December 31, 2016, the balance sheet of Darwin Corporation included 8 million common shares and 4 million nonconvertible preferred shares. On July 1, 2017, Darwin issued a 5 for 4 stock split on its common shares and paid $10 million cash dividends on the preferred stock. Net income for the year ended December 31, 2017, was $40 million. Darwin’s 2017 EPS should be:

A) $3.00.
B) $4.00.
C) $5.00.
D) $5.55.

Answer: A) $3.00.

We hope you have got the correct answer to your question “At December 31, 2016, the balance sheet of Darwin Corporation included 8 million common shares and 4 million nonconvertible preferred shares. On July 1, 2017, Darwin issued a 5 for 4 stock split on its common shares and paid $10 million cash dividends on the preferred stock. Net income for the year ended December 31, 2017, was $40 million. Darwin’s 2017 EPS should be:”, which was part of Accounting MCQs & Answers. Thanks for choosing us.