5) ABC Co. had 120,00 shares of stock outstanding on January 1, 2020. On May 1, 2020, ABC issued 60,000 shares. On July1, ABC purchased 10,000 treasury shares, which were reissued on October 1. Compute ABC’s weighted-average number of shares outstanding for 2020. 6) ABC Corp. had 300,000 shares of common stock outstanding on January 1, 2020. On May 1, ABC issued 30,000 shares. Compute the weighted-average number of shares outstanding if the 30,000 shares were issued in a 10% stock dividend. 7) ABC Corp. earned net income of $300,000 in 2020 and had 100,000 shares of common stock outstanding throughout the year. Also outstanding all year was $800,000 of 9% bonds, which are convertible into 16,000 shares of common. ABCs tax rate is 20%. Compute ABC’s 2020 diluted earnings per share.
5) ABC Co. had 120,00 shares of stock outstanding on January 1, 2020. On May 1, 2020, ABC issued 60,000 shares. On July1, ABC purchased 10,000 treasury shares, which were reissued on October 1. Compute ABC’s weighted-average number of shares outstanding for 2020.
6) ABC Corp. had 300,000 shares of common stock outstanding on January 1, 2020. On May 1, ABC issued 30,000 shares. Compute the weighted-average number of shares outstanding if the 30,000 shares were issued in a 10% stock dividend.
7) ABC Corp. earned net income of $300,000 in 2020 and had 100,000 shares of common stock outstanding throughout the year. Also outstanding all year was $800,000 of 9% bonds, which are convertible into 16,000 shares of common. ABCs tax rate is 20%. Compute ABC’s 2020 diluted earnings per share.
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