Question

Sampson Corp. had 500,000 shares of common stock outstanding at the beginning of the year. The average market price was $20. On April 1, Sampson issued 100,000 shares of $1000 par value 10 percent preferred stock. On July 1, Sampson issued 200,000 warrants to purchase 10 shares of common stock each at $22 per share. On October 1, Sampson repurchased 60,000 of common stock as treasury stock for $15 per share (EPS) was:

a. 515,000.
b. 600,000.
c. 485,000.

Answer 1

c. 485,000

Step-by-step explanation:

[(500,000 × 12) − (60,000 × 3)] / 12 = 485,000