Darlington lndus nes Ltd. reported earnings of S 1 700 000 in 20χ6; no d vidends the two classes of shares are as follows: ere declared. Da ng on as two casses for nary shares Cla ss A and Class B. The characteristics of 95,000 Class A shares and 680,000 Class B shares were outstanding throughout the year. - Class A shares get 14 votes per share; Class B has eight vote · lf dividends are declared, Class A shares are entitled to a base dividend of $6.00 per share while Class B shares are entitled to a base dividend of $0.95 per share. Additional dividends beyond the base dividend are shared on an equal basis per share Required: Calculate basic EPS for 20X6. (Round the intermediate calculations to 3 decimal places and your answers to 2 decimal places.) Class A Class B Basic EPS Darlington lndus nes Ltd. reported earnings of S 1 700 000 in 20χ6; no d vidends the two classes of shares are as follows: ere declared. Da ng on as two casses for nary shares Cla ss A and Class B. The characteristics of 95,000 Class A shares and 680,000 Class B shares were outstanding throughout the year. - Class A shares get 14 votes per share; Class B has eight vote · lf dividends are declared, Class A shares are entitled to a base dividend of $6.00 per share while Class B shares are entitled to a base dividend of $0.95 per share. Additional dividends beyond the base dividend are shared on an equal basis per share Required: Calculate basic EPS for 20X6. (Round the intermediate calculations to 3 decimal places and your answers to 2 decimal places.) Class A Class B Basic EPS

Class A Class B Basic EPS $ 6.62 $ 1.57 Working notes: Earnings per share indicates the income earned by each share of common stock, Shares Outstanding Base dividend per share Total Base Dividend Class A 95000 6 570000 Class B 680000 0.95 646000 775000 1216000 Remaining earnings after base dividend = $1,700,000 - $1,216,000 = $484,000 Remaining earnings per share = $ 484,000 ÷ 775,000 shares = $ 0.624 (Rounded to 3 decimal) Basic EPS = Base dividend per share + Remaining earnings per share, Therefore Basic EPS would be, For Class A, EPS = $ 6 + 0.624 = $ 6.624 For Class B, EPS = $ 0.95 + 0.624 = $ 1.574 .

Darlington lndus nes Ltd. reported earnings of S 1 70…

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	Class A	Class B
Basic EPS	$ 6.62	$ 1.57

Working notes:

Earnings per share indicates the income earned by each share of common stock,

	Shares Outstanding	Base dividend per share	Total Base Dividend
Class A	95000	6	570000
Class B	680000	0.95	646000
	775000		1216000

Remaining earnings after base dividend = $1,700,000 - $1,216,000 = $484,000

Remaining earnings per share = $ 484,000 ÷ 775,000 shares = $ 0.624 (Rounded to 3 decimal)

Basic EPS = Base dividend per share + Remaining earnings per share,

Therefore Basic EPS would be,

For Class A, EPS = $ 6 + 0.624 = $ 6.624
For Class B, EPS = $ 0.95 + 0.624 = $ 1.574

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Darlington lndus nes Ltd. reported earnings of S 1 700 000 in 20χ6; no d vidends the two classes ...

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