At January 1, 2019, the capital structure of PTC Corp. contained the following:Common stock - 500,000 shares issuedTreasury stock – 50,000 shares heldPreferred stock – convertible into 15 shares of common for every share of preferred, cumulative, $100 par value, 6%, 30,000 shares outstandingBonds payable - convertible into 40 shares of common for every $1,000 par value bond, $2,000,000 par value outstanding, 4% coupon rate, issued at parStock options outstanding: 100,000 options with an exercise price of $20 per share and 100,000 options with an exercise price of $40 per share. Additional information for 2019:On March 1, 2019, an addition 210,000 shares of common stock were issued.On November 1, 2019, the company purchased an additional 60,000 shares of treasury stockNet income for 2019 was $1,600,000The company’s tax rate is 20%The company’s average stock price in 2019 was $32.What is 2019 Basic EPS?

Calculation of weighted average share Date Particulars Months Shares Average shares Jan 1, 2019…

Answered: At January 1, 2019, the capital…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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At January 1, 2019, the capital structure of PTC Corp. contained the following:

Common stock - 500,000 shares issued
Treasury stock – 50,000 shares held
Preferred stock – convertible into 15 shares of common for every share of preferred, cumulative, $100 par value, 6%, 30,000 shares outstanding
Bonds payable - convertible into 40 shares of common for every $1,000 par value bond, $2,000,000 par value outstanding, 4% coupon rate, issued at par
Stock options outstanding: 100,000 options with an exercise price of $20 per share and 100,000 options with an exercise price of $40 per share.

Additional information for 2019:

On March 1, 2019, an addition 210,000 shares of common stock were issued.
On November 1, 2019, the company purchased an additional 60,000 shares of treasury stock
Net income for 2019 was $1,600,000
The company’s tax rate is 20%
The company’s average stock price in 2019 was $32.

What is 2019 Basic EPS?

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