Req a-1 | ||||||
Earnings per share: | ||||||
Net income for the year | 1920000 | |||||
Divide: Number of common Shares outstanding | 400000 | |||||
Earnings per share: | 4.8 | |||||
Req a-2 | ||||||
Earnings per share: | ||||||
Net income for the year | 1920000 | |||||
less: Preferred dividend (100000 shares @ 100) *8% | 800000 | |||||
Earnings available for common stockholders | 1120000 | |||||
Divide: Number of common shares outstanding | 300000 | |||||
Earnings per share | 3.73 | |||||
Req b: | ||||||
The earnings computed in Part a-2 is BASIC EPS. | ||||||
The diluted EPS is computed in the situation when there is a likely situation of redemtpion of preferred shares in the short period and will have an impact on EPS of Common stockholders | ||||||
Hence, The EPS computed above is BASIC EPS | ||||||
.5 The net income of Foster Furniture, Inc., amounted to $1,920,000 for the current year. t...
The net income of Foster Furniture, Inc., amounted to $1,800,000 for the current year. a. Compute the amount of earnings per share assuming that the shares of capital stock outstanding throughout the year consisted of: 1. 400,000 shares of $1 par value common stock and no preferred stock. 2. 100,000 shares of 8 percent, $100 par value preferred stock and 300,000 shares of $5 par value common stock. b. Is the earnings per share figure computed in part a(2) considered...
The net income of Foster Furniture, Inc. amounted to $1,800,000 for the current year. Compute the amount of earnings per share assuming that the shares of capital stock outstanding throughout the year consisted of 400,000 shares of $1 par value common stock and no preferred stock, 100,000 shares of 8 percent, $100 par value, cumulative preferred stock and 300,000 shares of $5 par value common stock, Is the earnings per share figure computed in part a(2) considered to be basic...
(EPS with Convertible Bonds and Preferred Stock) On January 1, 2020, Crocker Company issued 10-year, $2,000,000 face value, 6% bonds, at par. Each $1,000 bond is convertible into 15 shares of Crocker common stock. Crocker's net income in 2020 was $400,000, and its tax rate was 20%. The company had 100,000 shares of common stock outstanding throughout 2020. None of the bonds were converted in 2020. Question: Compute basic and diluted EPS assuming $400,000 net income, 100,000 weighted avg shares...
Primus, Inc., owns all outstanding stock of Sonston, Inc. For the current year, Primus reports net income (exclusive of any investment income) of $560,000. Primus has 100,000 shares of common stock outstanding. Sonston reports net income of $160,000 for the period with 40,000 shares of common stock outstanding. Sonston also has 10,000 stock warrants outstanding that allow the holder to acquire shares at $12.00 per share. The value of this stock was $24 per share throughout the year. Primus owns...
9.3 Net income was $659,250 for the year. Throughout the year the company had outstanding 18,00 shares of $2.50, $50 par value preferred stock and 105,000 shares of common stock. Calculate basic earnings per share of common stock for the year.
The information below pertains to Windsor Company for 2021. Net income for the year $1,190,000 7% convertible bonds issued at par ($1,000 per bond); each bond is convertible into 30 shares of common stock 1,970,000 6% convertible, cumulative preferred stock, $100 par value; each share is convertible into 3 shares of common stock 4,000,000 Common stock, $10 par value 6,280,000 Tax rate for 2021 20% Average market price of common stock $25 per share There were no changes during...
The information below pertains to Sarasota Company for
2021.
Net income for the year
$1,220,000
7% convertible bonds issued
at par ($1,000 per bond); each bond is convertible into
30 shares of common stock
1,990,000
6% convertible, cumulative
preferred stock, $100 par value; each share is convertible
into 3 shares of common stock
3,990,000
Common stock, $10 par
value
6,140,000
Tax rate for 2021
20%
Average market price of
common stock
$25 per share
There were no changes during...
The information below pertains to Flint Company for 2018. $1,180,000 1,910,000 Net income for the year 7% convertible bonds issued at par ($1,000 per bond); each bond is convertible into 30 shares of common stock 6% convertible, cumulative preferred stock, $100 par value; each share is convertible into 3 shares of common stock Common stock, $10 par value Tax rate for 2018 Average market price of common stock 3,820,000 5,850,000 40% $25 per share There were no changes during 2018...
The information below pertains to Cheyenne Company for 2021. $1,140,000 2,010,000 Net income for the year 6% convertible bonds issued at par ($1,000 per bond); each bond is convertible into 30 shares of common stock 6% convertible, cumulative preferred stock, $100 par value; each share is convertible into 3 shares of common stock Common stock, $10 par value Tax rate for 2021 Average market price of common stock 3,820,000 5,820,000 20% $25 per share There were no changes during 2021...
The information below pertains to Stellar Company for
2021.
Net income for the year
$1,250,000
7% convertible bonds issued at par ($1,000 per bond); each bond
is convertible into
30 shares of common stock
2,080,000
6% convertible, cumulative preferred stock, $100 par value;
each share is convertible
into 3 shares of common stock
3,800,000
Common stock, $10 par value
5,770,000
Tax rate for 2021
20%
Average market price of common stock
$25 per share
There were no changes during...