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Foundations Of Financial Management
Found in: Page 51
Foundations Of Financial Management

Foundations Of Financial Management

Book edition 16th
Author(s) Stanley B. Block, Geoffrey A. Hirt, Bartley Danielsen
Pages 768 pages
ISBN 9781259277160

Short Answer

Quantum Technology had $669,000 of retained earnings on December 31, 20X2. The company paid common dividends of $35,500 in 20X2 and had retained earnings of $576,000 on December 31, 20X1. How much did Quantum Technology earn during 20X2, and what would earnings per share be if 47,400 shares of common stock were outstanding?

The net earnings of the company during 20X2 was $128,500, and the earnings per share would be $2.71.

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Step by Step Solution

Calculation of net earning of Quantum Technology during 20X2

Closing retained earning-Opening retained earning+Dividend paid

=$669,000-$576,000+35,500

=$128,500

Calculation of earning per share

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