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how to calculate earnings per share (EPS)
Question
Hancock Company had 400,000 of common outstanding throughout year 2012 and issued another 100,000 on October 1, 2012. Net income for the year ended December 31, 2012, was $1,530,000. Hancock does not have any preferred stock outstanding. What is Hancock's 2012 basic EPS, rounded to the nearest penny?
a. $3.03
b. $3.82
c. $3.60
d. $3.40
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