Problem
Viceroy Ltd has a December 31 year-end. Its ledger account for Common Shares (Class A voting) showed the following information (dollars amounts are in thousands):
Opening Balance Jan1 = 400,000 shares
Shares issued June 30 = 200,000
Shares issued September 30 = 36,000
Net Income for the Year =$2,000,000
Preferred Shares (Class B Non Voting Cumulative) = 50,000 shares ($600)
Preferred Share Dividend entitlement for the year $105,000
Hint: check EPS formula in the chapter of Financial Statement Analysis
What is the Basic Earnings Per Share that Viceroy will report this year? Use the weighted average number of common shares.