The net income of Foster Furniture, Inc., amounted to $1,800,000 for the current year. a. Compute...
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 to be basic or diluted?
Homework Answers
| a | ||
| 1 | ||
| Net income | 1800000 | |
| Shares of common stock outstanding throughout the year | 400000 | |
| Earnings per share | 4.50 | |
| 2 | ||
| Net income | 1800000 | |
| Less: Preferred stock dividend | 800000 | =100000*100*8% |
| Earnings available for common stock | 1000000 | |
| Shares of common stock outstanding throughout the year | 300000 | |
| Earnings per share | 3.33 | |
| b | ||
| The earnings per share figure computed in part a (2) is a basic EPS figure | ||
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The net income of Foster Furniture, Inc., amounted to $1,800,000
for the current year. a. Compute...
The net income of Foster Furniture, Inc. amounted to $1,800,000 for the current year. Compute the amount of earnings per...
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...
.5 The net income of Foster Furniture, Inc., amounted to $1,920,000 for the current year. t...
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.5 The net income of Foster Furniture, Inc., amounted to $1,920,000 for the current year. t of ing 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 h. Is the eanings per share figure computed in part a(2) considered to be basic or diluted? Explain.
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$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...
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The information below pertains to Stellar Company for
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7% convertible bonds issued at par ($1,000 per bond); each bond
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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...
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