General Corporation was organized on January 1 and issued 500,000 shares of common stock on that date. On July 1, an additional 200,000 shares were issued for cash. Net income for the year was $5,184,000. Net earnings per share amounted to:
A. $7.41.
B. $7.98.
C. $8.41.
D. $8.64.
D
500,000 × 6/12) + (700,000 × 6/12) = 600,000; $5,184,000/600,000 = $8.64
Business
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