Bailey Industries – earnings per share
On January 1, 2012, Bailey Industries had stock outstanding as follows.
6% Cumulative preferred stock, $119 par value,
issued and outstanding 10,800 shares
$1,285,200
Common stock, $10 par value, issued and
outstanding 241,200 shares
2,412,000
To acquire the net assets of three smaller companies, Bailey authorized the issuance of an additional 176,400 common shares. The acquisitions took place as shown below.
Date of Acquisition
Shares Issued
Company A April 1, 2012
63,600
Company B July 1, 2012
85,200
Company C October 1, 2012
27,600
On May 14, 2012, Bailey realized a $106,800 (before taxes) insurance gain on the expropriation of investments originally purchased in 2000.
On December 31, 2012, Bailey recorded net income of $321,600 before tax and exclusive of the gain.
Assuming a 43% tax rate, compute the earnings per share data that should appear on the financial statements of Bailey Industries as of December 31, 2012. Assume that the expropriation is extraordinary. (Round answer to 2 decimal places, e.g. $2.55.)