Question - The following information pertains to ABC Corp.'s outstanding stock for 2008: The net income was $250,000.
Common stock, $1 par value
Shares outstanding, 1/1/08 10,000
2-for-1 stock split, 4/1/08 10,000
Shares issued, 8/1/08 5,000
Preferred stock, $20 par value, 6% cumulative
Shares outstanding, 1/1/08 4,000
How many shares should ABC Corp. use to calculate 2008 basic EPS?
How much is basic earnings per share?