ABC Company had 130,000 shares of common stock outstanding on January 1, 2024.• On March 31, 2024, ABC sold 65,000 shares of common stock for cash.• ABC also had 8,500 shares of convertible $100 par, 2% preferred stock outstanding throughout2024. It is convertible into 2 shares of common for each share of preferred.• ABC also had $470,000 in 8%, cumulative convertible bonds outstanding throughout 2024.Bonds are convertible into 14,100 shares of common stock.• Reported net income for 2024 was $390,000 with a 30% tax rate.• Common shareholders received $1.70 per share dividends after preferred dividends were paidin 2024.Answer the following questions:1. What is the amount of the preferred stock dividend? (whole number) 546002. How many weighted outstanding shares are there for 2024? (whole number)311003. What is the basic EPS numerator? (whole number) 3524004. What is the basic EPS denominator? (whole number)5. What is Basic EPS? (round to 2 decimal places)6. What is the interest on the bonds? (whole number)7. How much tax cost relates to the interest? (whole number)8. What is the diluted EPS numerator? (whole number)9. What is the diluted EPS denominator? (whole number)10. What is the diluted EPS? (round to 2 decimal places)

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ABC Company had 130,000 shares of common stock outstanding on January 1, 2024. • On March 31, 2024, ABC sold 65,000 shares of common stock for cash. • ABC also had 8,500 shares of convertible $100 par, 2% preferred stock outstanding throughout 2024. It is convertible into 2 shares of common for each share of preferred. • ABC also had $470,000 in 8%, cumulative convertible bonds outstanding throughout 2024. Bonds are convertible into 14,100 shares of common stock. • Reported net income for 2024 was $390,000 with a 30% tax rate. . Common shareholders received $1.70 per share dividends after preferred dividends were paid in 2024.

ABC Company had 130,000 shares of common stock outstanding on January 1, 2024. • On March 31, 2024, ABC sold 65,000 shares of common stock for cash. • ABC also had 8,500 shares of convertible $100 par, 2% preferred stock outstanding throughout 2024. It is convertible into 2 shares of common for each share of preferred. • ABC also had $470,000 in 8%, cumulative convertible bonds outstanding throughout 2024. Bonds are convertible into 14,100 shares of common stock. • Reported net income for 2024 was $390,000 with a 30% tax rate. . Common shareholders received $1.70 per share dividends after preferred dividends were paid in 2024.

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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