3- On 1/1: 500,000 shares of C/S are outstanding. 1/4, 100,000 shares areissued. 1/7, a 10% stock dividend is issued. On 1/9, 18,000 shares ofTreasury Stock are repurchased.Calculate the weighted average number of shares of C/S outstanding at 12/31.4- Assume that a company reporting $1,000 net income for the year has the followingcapital structure, which did not change during the year:Preferred stock, $100 par, 10% cumulative, 4 shares, each convertible into 10shares of common stockCommon stock, $1 par, 100 sharesCalculate BEPS and DEPS? Is the Income Dilutive or Antidilutive?

As per the honor code, We’ll answer the first question since the exact one wasn’t specified. Please…

3- On 1/1: 500,000 shares of C/S are outstanding. 1/4, 100,000 shares are issued. 1/7, a 10% stock dividend is issued On 1/9, 18,000 shares of Treasury Stock are repurchased. Calculate the weighted average number of shares of C/S outstanding at 12/31.

3- On 1/1: 500,000 shares of C/S are outstanding. 1/4, 100,000 shares are issued. 1/7, a 10% stock dividend is issued On 1/9, 18,000 shares of Treasury Stock are repurchased. Calculate the weighted average number of shares of C/S outstanding at 12/31.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.

Question

3- On 1/1: 500,000 shares of C/S are outstanding. 1/4, 100,000 shares are
issued. 1/7, a 10% stock dividend is issued. On 1/9, 18,000 shares of
Treasury Stock are repurchased.
Calculate the weighted average number of shares of C/S outstanding at 12/31.
4- Assume that a company reporting $1,000 net income for the year has the following
capital structure, which did not change during the year:
Preferred stock, $100 par, 10% cumulative, 4 shares, each convertible into 10
shares of common stock
Common stock, $1 par, 100 shares
Calculate BEPS and DEPS? Is the Income Dilutive or Antidilutive?

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