Assume the following data relative to ABC Corporation for 2016 is available: Net Income $1,400,000 Transactions in common shares: Jan 1, 2016 Beginning number: 500,000 March 1, 2016 Purchased treasury shares 60,000 June 1,2016 Stock split 2 for 1 Nov 1, 2016 Issuance of new shares 120,000 8% Cumulative Preferred Stock Sold at par, convertible into 200,000 shares as adjusted for stock split $1,000,000 Stock Options-60,000 options Exercisable at the option price of $25 per share. $30 average market price in 2016, $20 year end marke price(market price and option price adjusted for stock split) 4. What is Diluted EPS per share?
Assume the following data relative to ABC Corporation for 2016 is available: Net Income $1,400,000 Transactions in common shares: Jan 1, 2016 Beginning number: 500,000 March 1, 2016 Purchased treasury shares 60,000 June 1,2016 Stock split 2 for 1 Nov 1, 2016 Issuance of new shares 120,000 8% Cumulative Preferred Stock Sold at par, convertible into 200,000 shares as adjusted for stock split $1,000,000 Stock Options-60,000 options Exercisable at the option price of $25 per share. $30 average market price in 2016, $20 year end marke price(market price and option price adjusted for stock split) 4. What is Diluted EPS per share?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Assume the following data relative to ABC Corporation for 2016 is available:
Net Income $1,400,000
Transactions in common shares:
Jan 1, 2016 Beginning number: 500,000
March 1, 2016 Purchased treasury shares 60,000
June 1,2016 Stock split 2 for 1
Nov 1, 2016 Issuance of new shares 120,000
8% Cumulative Preferred Stock
Sold at par, convertible into 200,000 shares as adjusted for stock split $1,000,000
Stock Options-60,000 options
Exercisable at the option price of $25 per share. $30 average market price in 2016, $20 year end marke price(market price and option price adjusted for stock split)
4. What is Diluted EPS per share?
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