Mcdonnell-myer corporation reported net income of $741 million. the company had 544 million common shares outstanding at january 1 and sold 36 million shares on feb. 28. as part of an annual share repurchase plan, 6 million shares were retired on april 30 for $47 per share. calculate mcdonnell-myer's earnings per share for the year.

McDonnell-Myer's earnings per share for the year is $1.3

Explanation:

Given data

net income = $741 million

common shares = 544 million

sold share = 36 million

shares were retired = 6 million

per share = $47

to find out

McDonnell-Myer's earnings per share for the year

solution

we know common shares outstanding at 1 January   = 544 million

so we say share sold 28 feb  = 36 million that mean = 36 × (10/12) = 30

and share repurchased 30 April  = 6 million that mean = 6 × (8 /12) = 4

so total no of share outstanding at end of year  = 544 + 30 - 4 = 570 million

so

earning per share = net earning / no of share

earning per share =  741 / 570

earning per share =  $ 1.3

McDonnell-Myer's earnings per share for the year is $1.3