At January 1, 2014, Morrisey Corporation Had the Following Share

Essay

At January 1, 2014, Morrisey Corporation had the following share capital. At that time no preferred dividends were in arrears: On July 1, 2014, the board of directors declared and paid a $1.50 cash dividend on common shares, and the full annual dividend to which the preferred shareholders were entitled. On October 1, 2014, Morrisey sold an additional 80,000 common shares for proceeds of $280,000. The corporation earned $650,000 during the year.
Instructions
a. Calculate Morrisey's earnings per share for 2014.
b. Calculate Morrisey's total dividend payout ratio for 2014.