ABC PLC has a year-end of 31st December 2012. During the year, ABC LTD redeemed 80 million of its existing share capital on 30th September 2012. Only 50% of the total amount payable on shares was paid on 30th September. The number of shares outstanding at the start of the year were 130 million. What is the weighted average number of shares to be used in the EPS calculation?
50 million
90 million
110 million
120 million
ABC PLC has a year-end of 31st December 2012. During the year, ABC LTD issued 80 million new shares on 1st October 2012. Only 50% of the total amount receivable on the new shares was called at the time of issue of shares. The number of shares outstanding at the start of the year were 100 million. What is the weighted average number of shares to be used in the EPS calculation?
180 million |
||
140 million |
||
120 million |
||
110 million |
Calculation of weighted average number of shares outstanding | |||||||||
Shares outstanding at start of year | 130 | ||||||||
Less: Weighted average shares redeemed | 10 | (80*(3/12)*50%) | |||||||
Weighted average number of shares outsanding | 120 | million | |||||||
Out of 12 months 50% of redeemed shares were not outstanding for 3 months and thus would be deducted from total shares at start of year | |||||||||
Since payment is made for only 50% of shares, only 50% of shares redeemed are used. | |||||||||
Calculation of weighted average number of shares outstanding | |||||||||
Shares outstanding at start of year | 100 | ||||||||
Add: Weighted average shares redeemed | 10 | (80*(3/12)*50%) | |||||||
Weighted average number of shares outstanding | 110 | million | |||||||
Out of 12 months the new issued shares are outstanding for 3 months from Oct-Dec and thus weighted average is considered | |||||||||
Since amount received is 50% of shares issued, we are using only 50% of shares issued | |||||||||
ABC PLC has a year-end of 31st December 2012. During the year, ABC LTD redeemed 80...
ABC PLC, which has a year-end of 31st December 2012, issued 2 for 3 bonus shares on 30th June 2012. Net income on 31 December 2011 is $7 000 000 and on 31 December 2012 is $8 000 000 and there were 3 000 000 shares on 1 January 2012. What is the earnings per share for 2012 taking into consideration the bonus issue? $1.33 $1.40 $1.60
Effective April 1, 2016. ABC Inc, which has a year-end of December 31st, authorized $1500000 of callable, mortgage bonds (secured by 2200000 of property and equipment at market value ). The bond paid interest at a rate of 8% per year and had a term of 6 year. Interest way payable each September 30th and march 31st. On July 1, 2017 ABC INC issued 1000 of the bonds in exchange for cash in the total amount of $906000. On October...
ABC Incorporated manufactures and sells toys. The following was its balance sheet as on December 31st, 2011. ASSETS LIABILITIES AND STOCKHOLDERS EQUITY Cash $250,000 Accounts Payable $120,000 Accounts Receivable $300,000 Salaries Payable $80,000 Inventory $80,000 Dividends Payable $50,000 Property, Plant and Equipment (Less Accumulated Depreciation, 150,000) $630,000 Retained earnings $980,000 Intangible Assets $62,000 Common Stock 92,000 TOTAL 1,322,000 TOTAL 1,322,000 The following is the relevant information for the year ending 2012. The depreciation on property, plant and equipment for the...
The following information relates to ABC Ltd. Revenue for 2012 amounted to $564 000 (2011- $315 000) Purchases of inventory for the two years were as follows: 2012 - $303 000 2011 - $182 500 Operating expenses were : 2012 $100 000 2011 $78 000 Profit before tax at the end of 2012 was $27 500. No dividends had been paid in the last few years. Taking into account the above information, the directors decided to change the basis for...
QUESTION 1 The following information is related to JT Company PLC (JT) as at 31st December 2018: Issued share capital of JT is $500 million and it comprises with 1,000,000 ordinary shares. JT is a quoted company and its current share price is $250. The dividend paid for the current year was $40 per share and growth rate of annual dividend payment is 5%. The retained earnings of JT were $100 million. JT has issued irredeemable preference shares for a...
Pina Ltd. began its latest fiscal year on January 1, 2020, with 10,000 common shares outstanding. On April 1, Pina sold 3,900 additional common shares. The company declared and issued a 20% stock dividend on June 1. On July 1, Pina repurchased and cancelled 170 common shares. An additional 3,750 common shares were issued on September 1. On November 1, Pina declared and issued a 2-for-one stock split. On December 1, Pina issued an additional 100 shares. Following the fiscal...
1. ABC currently has outstanding 12-year bond with 7% coupon that pays semiannually; the current market price is $1075. What is ABC’s cost of debt? 2. ABC’s beta is 1.15, the 20-year T-bond has a yield to maturity (YTM) of 3.25%, and the market risk premium is 7.5%. What is ABC’s cost of common stock? 3. ABC’s preferred dividend is $3.75 dollar and the price of ABC’s preferred stock is $50. What is ABC’s cost of preferred stock? 4. Last...
on December 31, 2017, Ainsworth, Inc. had 650 million shares of common stock outstanding. Thirty five million shares of 8%. $100 par value cumulative, nonconvertible preferred stock were sold on January 2 shares of its common stock as treasury stock. Twenty milion treasury shares wer Ainsworth purchased 50 million sold on August 31, Ainsworth issued a 4% common dividend on June 12, 2018 No cash dividends were declared in 2018. For the year ended December 31, 2018, Ainsworth lion, including...
QUESTION 2 Pleasant Place Plc is planning to obtain a stock market listing by offering 30% of its existing shares to the public. No new shares will be issued. Its most recent summarized results are as follows; Turnover GHC 120 m Earnings GHC 1,500m Number of shares in issue 6 million The company is highly geared and has a dividend policy of 50% pay-out rate. And the retention policy is expected to achieve 10% dividend growth each...
Sandhill Inc. is publicly traded and uses a calendar year for financial reporting. The company is authorized to issue 50 million common shares. At no time has Sandhill issued any potentially dilutive securities. The following is a summary of Sandhill’s common share activities:Number of common shares issued and outstanding at December 31, 20186,180,000Shares issued as a result of a 10% stock dividend on September 30, 2019618,000Shares issued for cash on March 31, 20202,720,000Number of common shares issued and outstanding at December 31, 20209,518,000Sandhill issued its 2020 financial statements...