Dividends and EPS
Swifty Inc. had net income for the current year ending December 31, 2020 of $921,150. During the entire year, there were 501,000 common shares outstanding. The company had two classes of preferred shares outstanding: the Class A preferred shares were $2.03 cumulative shares of which 12,000 were outstanding, and were convertible to common shares at a rate of 1:1. There were 100,000 $5.03 Class B non-cumulative preferred shares outstanding that were also convertible at a rate of 1:1. Swifty had outstanding a $1,000,000, 6% bond issued in 2009 that was convertible to 21,000 common shares. The company also had outstanding a $1,000,000, 4% bond issued in 2010 that was convertible to 25,000 common shares. No dividends were declared or paid this year. Swifty’s tax rate is 38%.
Calculate the income effect of the dividends on Class A preferred shares.
Dividends on Class A preferred shares?
Calculate the income effect of the dividends on Class B preferred shares.
Dividends on Class B preferred shares?
Calculate basic earnings per share. (For simplicity, ignore the requirement to record the debt and equity portions of the convertible bond separately.) ?
Homework Answers
Request Answer!
We need at least 10 more requests to produce the answer.
0 / 10 have requested this problem solution
The more requests, the faster the answer.
Tamarisk Inc. had net income for the current year ending December 31, 2020 of $1,152.760. During...
Tamarisk Inc. had net income for the current year ending December 31, 2020 of $1,152.760. During the entire year, there were 504,000 common shares outstanding. The company had two classes of preferred shares outstanding: the Class A preferred shares were $2.38 cumulative shares of which 10,000 were outstanding, and were convertible to common shares at a rate of 1:1. There were 103,000 $6.38 Class B non-cumulative preferred shares outstanding that were also convertible at a rate of 1:1. Tamarisk had...
Sage Corporation had a net income for the current year ending December 31, 2021 of $1,248,000....
Sage Corporation had a net income for the current year ending December 31, 2021 of $1,248,000. Throughout 2021 the following items were outstanding: ● 389,500 common shares ● 18,000 Class A $3 cumulative preferred shares that were convertible to common shares at a rate of 1:1 ● 49,500 Class B $4 non-cumulative preferred shares that were convertible at a rate of one common share for every two preferred shares. ● $496,000, 8% bonds that were convertible to 16,000 common shares...
P16.5 (LO 5) Groupwork (EPS with Complex Capital Structure) Amy Dyken, controller at Fitzgerald Pharmaceutical Industries,...
P16.5 (LO 5) Groupwork (EPS with Complex Capital Structure) Amy Dyken, controller at Fitzgerald Pharmaceutical Industries, a public company, is currently preparing the calculation for basic and diluted earnings per share and the related disclosure for Fitzgerald's financial statements. Below is selected financial information for the fiscal year ended June 30, 2020. Fitzgerald Pharmaceutical Industries Selected Balance Sheet Information June 30, 2020 $ 1,000,000 5,000,000 6,000,000 $12,000,000 Long-term debt Notes payable, 10% 8% convertible bonds payable 10% bonds payable Total...
Flint Corporation had net income for the current fiscal year of $950,000, and common shares outstanding...
Flint Corporation had net income for the current fiscal year of $950,000, and common shares outstanding of 100,000. There were no changes to Flint's common shares during the year. Flint also had outstanding a $1,000,000, 10% bond sold in a previous year that was convertible to 82,000 common shares. In addition, Flint sold a new bond on October 1 of the current year. The new bond was a $1,000,000, 12% bond, convertible to 77,000 shares. Flint was subject to a...
Bridgeport Corporation had a net income for the current year ending December 31, 2021 of $1,211,000....
Bridgeport Corporation had a net income for the current year ending December 31, 2021 of $1,211,000. Throughout 2021 the following items were outstanding: • 415,000 common shares • 20,000 Class A $3 cumulative preferred shares that were convertible to common shares at a rate of 1:1 52,000 Class B $4 non-cumulative preferred shares that were convertible at a rate of one common share for every two preferred shares. $510,000, 8% bonds that were convertible to 15,000 common shares • $287,000,...
E16.25 (LO5) (EPS wit Company issued 10-year. S: 15 shares of Crocker ce 20%. The company...
E16.25 (LO5) (EPS wit Company issued 10-year. S: 15 shares of Crocker ce 20%. The company had 100.000 sh s! (EPS with Convertible Bonds and Preferred Stock) On January 1, 2020, Crocker issued 10-year, $2,000,000 face value, 6% bonds, at par. Each $1,000 bond is convertible into of Crocker common stock. Crocker's net income in 2020 was $400,000, and its tax rate was company had 100,000 shares of common stock outstanding throughout 2020. None of the bonds were converted in...
EPS Computation similar example: On December 31, 2015, Merlin Company had outstanding 400,000 shares of common...
EPS Computation similar example: On December 31, 2015, Merlin Company had outstanding 400,000 shares of common stock and 40,000 shares of 8% cumulative preferred stock (par $10). On February 28, 2016, Merlin issued an additional 36,000 shares of common stock. A 10% stock dividend was declared and distributed on July 1, 2016. On September 1, 2016, 9,000 shares were retired. At year-end, there were fully vested incentive stock options outstanding for 30,000 shares of common stock (adjusted for the stock...
The following information pertains to the Chow Corporation for the fiscal year ended December 31, YR7:...
The following information pertains to the Chow Corporation for the fiscal year ended December 31, YR7: Net Income for YR7 $1,200,000 8% convertible bonds issued at par ($1,000 per bond). Each bond is convertible into 40 shares of common stock. $2,000,000 7% convertible bonds issued at par ($1,000 per bond). Each bond is convertible into 15 shares of common stock. $1,500,000 6% convertible, cumulative preferred stock, $100 par value. Each share is convertible into 3 shares of common stock. $3,000,000...
3. Dulcinea Corporation had $750,000 of net income in 2019. On January 1, 2019, there were...
3. Dulcinea Corporation had $750,000 of net income in 2019. On January 1, 2019, there were 200,000 shares of common stock outstanding. On April 1, 16,000 shares were issued. On July 1, Dulcinea issued a 10% stock dividend and on September 1. Dulcinea bought 20,000 shares of treasury stock. The market price of the common stock averaged $40 during 2019. The tax rate is 40%. During 2019, there were 10.000 shares of cumulative, convertible preferred stock outstanding. The preferred is...
1. Earnings Per Share Calculations (22 points) Curse of the Bambino Entertainment (CotBE) had the following...
1. Earnings Per Share Calculations (22 points) Curse of the Bambino Entertainment (CotBE) had the following securities outstanding and other information for 2017: Preferred Stock: Issue A Preferred Stock, cumulative and nonconvertible, 3.5%, $100 par: Dividend payments are in arrears for three (3) years. $1,000,000 $5,000,000 Issue B Preferred Stock, non-cumulative and convertible, 4%, $100 par Conversion rate is 3.5 common shares for every preferred share. Common Stock: Class A Common Stock, $1 par, 5,000,000 shares authorized, 1,000,000 shares issued...
Tamarisk Inc. had net income for the current year ending December 31, 2020 of $1,152.760. During the entire year, there were 504,000 common shares outstanding. The company had two classes of preferred shares outstanding: the Class A preferred shares were $2.38 cumulative shares of which 10,000 were outstanding, and were convertible to common shares at a rate of 1:1. There were 103,000 $6.38 Class B non-cumulative preferred shares outstanding that were also convertible at a rate of 1:1. Tamarisk had...
P16.5 (LO 5) Groupwork (EPS with Complex Capital Structure) Amy Dyken, controller at Fitzgerald Pharmaceutical Industries, a public company, is currently preparing the calculation for basic and diluted earnings per share and the related disclosure for Fitzgerald's financial statements. Below is selected financial information for the fiscal year ended June 30, 2020. Fitzgerald Pharmaceutical Industries Selected Balance Sheet Information June 30, 2020 $ 1,000,000 5,000,000 6,000,000 $12,000,000 Long-term debt Notes payable, 10% 8% convertible bonds payable 10% bonds payable Total...
Flint Corporation had net income for the current fiscal year of $950,000, and common shares outstanding of 100,000. There were no changes to Flint's common shares during the year. Flint also had outstanding a $1,000,000, 10% bond sold in a previous year that was convertible to 82,000 common shares. In addition, Flint sold a new bond on October 1 of the current year. The new bond was a $1,000,000, 12% bond, convertible to 77,000 shares. Flint was subject to a...
Bridgeport Corporation had a net income for the current year ending December 31, 2021 of $1,211,000. Throughout 2021 the following items were outstanding: • 415,000 common shares • 20,000 Class A $3 cumulative preferred shares that were convertible to common shares at a rate of 1:1 52,000 Class B $4 non-cumulative preferred shares that were convertible at a rate of one common share for every two preferred shares. $510,000, 8% bonds that were convertible to 15,000 common shares • $287,000,...
E16.25 (LO5) (EPS wit Company issued 10-year. S: 15 shares of Crocker ce 20%. The company had 100.000 sh s! (EPS with Convertible Bonds and Preferred Stock) On January 1, 2020, Crocker issued 10-year, $2,000,000 face value, 6% bonds, at par. Each $1,000 bond is convertible into of Crocker common stock. Crocker's net income in 2020 was $400,000, and its tax rate was company had 100,000 shares of common stock outstanding throughout 2020. None of the bonds were converted in...
EPS Computation similar example: On December 31, 2015, Merlin Company had outstanding 400,000 shares of common stock and 40,000 shares of 8% cumulative preferred stock (par $10). On February 28, 2016, Merlin issued an additional 36,000 shares of common stock. A 10% stock dividend was declared and distributed on July 1, 2016. On September 1, 2016, 9,000 shares were retired. At year-end, there were fully vested incentive stock options outstanding for 30,000 shares of common stock (adjusted for the stock...
The following information pertains to the Chow Corporation for the fiscal year ended December 31, YR7: Net Income for YR7 $1,200,000 8% convertible bonds issued at par ($1,000 per bond). Each bond is convertible into 40 shares of common stock. $2,000,000 7% convertible bonds issued at par ($1,000 per bond). Each bond is convertible into 15 shares of common stock. $1,500,000 6% convertible, cumulative preferred stock, $100 par value. Each share is convertible into 3 shares of common stock. $3,000,000...
3. Dulcinea Corporation had $750,000 of net income in 2019. On January 1, 2019, there were 200,000 shares of common stock outstanding. On April 1, 16,000 shares were issued. On July 1, Dulcinea issued a 10% stock dividend and on September 1. Dulcinea bought 20,000 shares of treasury stock. The market price of the common stock averaged $40 during 2019. The tax rate is 40%. During 2019, there were 10.000 shares of cumulative, convertible preferred stock outstanding. The preferred is...
1. Earnings Per Share Calculations (22 points) Curse of the Bambino Entertainment (CotBE) had the following securities outstanding and other information for 2017: Preferred Stock: Issue A Preferred Stock, cumulative and nonconvertible, 3.5%, $100 par: Dividend payments are in arrears for three (3) years. $1,000,000 $5,000,000 Issue B Preferred Stock, non-cumulative and convertible, 4%, $100 par Conversion rate is 3.5 common shares for every preferred share. Common Stock: Class A Common Stock, $1 par, 5,000,000 shares authorized, 1,000,000 shares issued...
Most questions answered within 3 hours.
-
Assume Kw = 1.01 ✕ 10−14
For pure water, we can calculate [H3O+ ] = [OH...
asked 55 minutes ago -
Suppose that on a temperature scale X, water boils at 203.0°X
and freezes at -105.7°X. What...
asked 1 hour ago -
BaS crystallizes in a cubic unit cell with S2- ions on each
corner and each face....
asked 2 hours ago -
A. 0≤P(Oi)≤10≤P(Oi)≤1 for each i
B. P(Oi)≤0P(Oi)≤0
C. P(Oi)=1+P(OCi)P(Oi)=1+P(OiC)
D. P(Oi)≥1P(Oi)≥1
If an experiment consists of...
asked 3 hours ago -
A battery has an emf of 9.20V and an internal resistance of 1.20
ohm. a)What resistance...
asked 3 hours ago -
The area of an elastic circular loop decreases at a constant
rate, dA/dt = −6.60×10−3 m2/s...
asked 4 hours ago -
The denaturation of proteins can be described by the
equilibrium
F⇌U
where F and U represent...
asked 6 hours ago -
Please answer what the maximum and minimum force is, and the
angle on the ion is...
asked 6 hours ago -
implement a program that reads a number of rows and a symbol.
The program will draw...
asked 6 hours ago -
Assume that when adults with smartphones are randomly selected,
45% use them in meetings or classes....
asked 6 hours ago -
Determine the number of formula units of
Na2SO4 and moles of oxygen contained in 8.11
moles...
asked 6 hours ago -
Explain in steps on the following code
What would be the output when executed
using System;...
asked 6 hours ago