2A2V ON JANUARY 1, ESTHER PHARMACEUTICALS HAD A BALANCE OF 10,000 SHA...
82.
CSO: 2A2e
LOS: 2A2v
On January 1, Esther Pharmaceuticals had a balance of 10,000 shares of common stock
outstanding. On June 1, the company issued an additional 2,000 shares of common stock
for cash. A total of 5,000 shares of 6%, $100 par, nonconvertible preferred stock was
outstanding all year. Esther’s net income was $120,000 for the year. The earnings per
share for the year were
a.
$7.50.
b.
$8.06.
c.
$10.00.
d.
$10.75.