Toft Co. had 120,000 shares of common stock outstanding at January 1. On April 1, it issued 40,000 additional shares of common stock. Outstanding all year were 10,000 shares of nonconvertible preferred stock on which a dividend of $5 per share was declared during the year. Net income for the year was $480,000. What should Toft report as earnings per share for the year?

  1. $2.69
  2. $2.87
  3. $3.00
  4. $3.20

Leave a Reply

Your email address will not be published. Required fields are marked *