Homework Answers
For cumulative preferred stock arrears of dividend will not be deducted but only the annual preferred dividend will be deducted net of income tax.
So the answer is Option B. Annual preferred dividend times (one minus income tax rate).
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In computing earnings per share for a simple capital structure, if the preferred stock is cumulative,...
In determining basic earnings per share for a year, dividends in arrears on cumulative preferred stock...
In determining basic earnings per share for a year, dividends in arrears on cumulative preferred stock should be Select one: O a. added back to net income whether declared or not. ОО b. disregarded. C. deducted from net income whether declared or not. d. deducted from net income only if declared.
(11 of 42) A company has cumulative preferred stock. When computing earnings per share, the current...
(11 of 42) A company has cumulative preferred stock. When computing earnings per share, the current year's dividends on the preferred stock should be: Deducted from earnings for the year. Deducted from common share dividends for the year. Added to earnings for the year. Ignored. (9 of 42) The result of a stock split is: A larger number of more valuable shares. An increase in assets. An increase in equity. A larger number of less valuable shares.
Chapter 19- Earnings per Share 95. A company with a simple capital structure would include which...
Chapter 19- Earnings per Share 95. A company with a simple capital structure would include which of the following in the computation of earnings per share? A) Convertible securities Number of shares of nonconvertible cumulative preferred shares C) Dividends on nonconvertible cumulative preferred shares D) Dividends on common shares B) Number Ans: C Difficulty: Medium Level of Learning: Knowledge Topic: LO2 96. DCE had 900 common shares outstanding on January 1, 20x3, issued 600 shares on May 1 and had...
In determining basic earnings per share, dividends on convertible cumulative preferred stock should be Select one:...
In determining basic earnings per share, dividends on convertible cumulative preferred stock should be Select one: O a. disregarded. O b. deducted from net income whether declared or not. O c. added back to net income whether declared or not. O d. deducted from net income only if declared.
The following information pertains to Parsons Co.: Preferred stock, cumulative: Par value per share $100 Dividend...
The following information pertains to Parsons Co.: Preferred stock, cumulative: Par value per share $100 Dividend rate 8% Shares outstanding 11,000 Dividends in arrears none Common stock: Par value per share $10 Shares issued 125,000 Dividends paid per share $2.10 Market price per share $47.00 Additional paid-in capital $490,000 Unappropriated retained earnings (after closing) $250,000 Retained earnings appropriated for contingencies $300,000 Common treasury stock: Number of shares 11,000 Total cost $250,000 Net income $633,000 Compute (assume no changes in balances...
Stockholders' equity: Capital stock: 7% cumulative preferred stock, $100 par value $ 15,000,000 Common stock, $5...
Stockholders' equity: Capital stock: 7% cumulative preferred stock, $100 par value $ 15,000,000 Common stock, $5 par value, 5,000,000 shares authorized, 4,400,000 shares issued and outstanding 22,000,000 Additional paid-in capital: Common stock 42,000,000 Retained earnings 64,450,000 Total stockholders’ equity $ 143,450,000 From this information, compute answers to the following questions. a. How many shares of preferred stock have been issued? b. What is the total amount of the annual dividends to which preferred stockholders are entitled? c. What was the...
York's outstanding stock consists of 80,000 shares of cumulative 5% preferred stock with a $5 par...
York's outstanding stock consists of 80,000 shares of cumulative 5% preferred stock with a $5 par value and also 200,000 shares of common stock with a $1 par value. During its first four years of operation, the corporation declared and paid the following total cash dividends 2015 $ 20,000 2016 28,000 2017 200,000 2018 350,000 Determine the amount of dividends paid each year to each of the two classes of stockholders assuming that the preferred stock is cumulative. Also determine...
The equity section of Cyril Corporation's balance sheet shows the following: Preferred stock-5% cumulative, $25 par...
The equity section of Cyril Corporation's balance sheet shows the following: Preferred stock-5% cumulative, $25 par value, 10,000 shares issued and outstanding Common stock-$10 par value, 30,000 shares issued and outstanding Retained earnings $ 250,000 300,000 267,500 $ 817,500 Total stockholders' equity This year's dividends on preferred stock have been paid. Determine the book value per share of common stock under two separate situations. 1. No preferred dividends are in arrears. 2. Three years of preferred dividends are in arrears....
The equity section of Cyril Corporation’s balance sheet shows the following: Preferred stock—6% cumulative, $25 par...
The equity section of Cyril Corporation’s balance sheet shows
the following:
Preferred stock—6% cumulative, $25 par value,
10,000 shares issued and outstanding
$
250,000
Common stock—$10 par value, 40,000 shares
issued and outstanding
400,000
Retained earnings
267,500
Total stockholders’ equity
$
917,500
This year's dividends on preferred stock have been paid. Determine
the book value per share of common stock under two separate
situations.
1. No preferred dividends are in arrears.
2. Three years of preferred dividends are in
arrears....
In determining basic earnings per share for a year, dividends in arrears on cumulative preferred stock should be Select one: O a. added back to net income whether declared or not. ОО b. disregarded. C. deducted from net income whether declared or not. d. deducted from net income only if declared.
(11 of 42) A company has cumulative preferred stock. When computing earnings per share, the current year's dividends on the preferred stock should be: Deducted from earnings for the year. Deducted from common share dividends for the year. Added to earnings for the year. Ignored. (9 of 42) The result of a stock split is: A larger number of more valuable shares. An increase in assets. An increase in equity. A larger number of less valuable shares.
Chapter 19- Earnings per Share 95. A company with a simple capital structure would include which of the following in the computation of earnings per share? A) Convertible securities Number of shares of nonconvertible cumulative preferred shares C) Dividends on nonconvertible cumulative preferred shares D) Dividends on common shares B) Number Ans: C Difficulty: Medium Level of Learning: Knowledge Topic: LO2 96. DCE had 900 common shares outstanding on January 1, 20x3, issued 600 shares on May 1 and had...
In determining basic earnings per share, dividends on convertible cumulative preferred stock should be Select one: O a. disregarded. O b. deducted from net income whether declared or not. O c. added back to net income whether declared or not. O d. deducted from net income only if declared.
York's outstanding stock consists of 80,000 shares of cumulative 5% preferred stock with a $5 par value and also 200,000 shares of common stock with a $1 par value. During its first four years of operation, the corporation declared and paid the following total cash dividends 2015 $ 20,000 2016 28,000 2017 200,000 2018 350,000 Determine the amount of dividends paid each year to each of the two classes of stockholders assuming that the preferred stock is cumulative. Also determine...
The equity section of Cyril Corporation's balance sheet shows the following: Preferred stock-5% cumulative, $25 par value, 10,000 shares issued and outstanding Common stock-$10 par value, 30,000 shares issued and outstanding Retained earnings $ 250,000 300,000 267,500 $ 817,500 Total stockholders' equity This year's dividends on preferred stock have been paid. Determine the book value per share of common stock under two separate situations. 1. No preferred dividends are in arrears. 2. Three years of preferred dividends are in arrears....
The equity section of Cyril Corporation’s balance sheet shows
the following:
Preferred stock—6% cumulative, $25 par value,
10,000 shares issued and outstanding
$
250,000
Common stock—$10 par value, 40,000 shares
issued and outstanding
400,000
Retained earnings
267,500
Total stockholders’ equity
$
917,500
This year's dividends on preferred stock have been paid. Determine
the book value per share of common stock under two separate
situations.
1. No preferred dividends are in arrears.
2. Three years of preferred dividends are in
arrears....
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