Calculate basic earnings per share and dilutedearnings per share for the followinginformationC company had not income for fiscal yearending Dec 31,2019 of 3.4 million. There were2 million common shares outstandingthroughout 2019. The average market price ofthe common shares for the fiscal year was$75. C company tax rate is 10%.C company had following potential commonshare outstanding during 2019Options to buy 100000 common share at $50per share80000 convertible preferred share entitled to acumulative dividend of 8 per hare . Eachpreferred share is convertible into twocommon shares.8% convertible debentures with a principalamount of $100 issue At par. Each $100debenture is convertible into 20 commonshares

Both basic and diluted earnings per share are employed to calculate a firm's profitability. The…

Answered: Calculate basic earnings per share and…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Calculation of EPS and retained earnings Everdeen Mining, Inc., ended 2019 with net profits before taxes of $447,000. The company is subject to a 21% tax rate and must pay $64,100 in preferred stock dividends before distributing any earnings on the 168,000 shares of common stock currently outstanding. a. Calculate Everdeen's 2019 earnings per share (EPS). b. If the firm paid common stock dividends of $0.76 per share, how many dollars would go to retained earnings? a. The firm's EPS is $ (Round to the nearest cent.) C
Note: RP AND IDR The book I use: Intermediate Accounting, Kieso, ifrs Edition, Fourth Edition Questions in image
Impact on EPS and Rankings Mills Company had five convertible securities outstanding during all of 2019. It paid the appropriate interest (and amortized any related premium or discount using the straight-line method) and dividends on each security during 2019. Each convertible security is described in the following table. The corporate income tax rate is 30%. Security Description 9.5% preferred stock $200,000 par value. Issued at 112. Each $100 par preferred stock is convertible into 4.2 shares of common stock. 11.0% bonds $220,000 face value. Issued at par. Each $1,000 bond is convertible into 44 shares of common stock. 8.0% preferred stock $150,000 par value. Issued at par. Each $100 par preferred stock is convertible into 3.8 shares of common stock. 10.0% bonds $100,000 face value. Issued at 94. Discount being amortized over 20-year life. Each $1,000 bond is convertible into 55 shares of common stock. 9.0% bonds $200,000 face value. Issued at 108. Premium being…
Current Attempt in Progress Sunland Company acquired 22000 shares of its own common stock at $21 per share on February 5, 2020, and sold 11000 of these shares at $28 per share on August 9, 2021. The fair value of Sunland's common stock was $25 per share at December 31, 2020, and $26 per share at December 31, 2021. The cost method is used to record treasury stock transactions. What account(s) should Sunland credit in 2021 to record the sale of 11000 shares? O Treasury Stock for $231000 and Retained Earnings for $77000. O Treasury Stock for $275000 and Retained Earnings for $33000. O Treasury Stock for $308000. O Treasury Stock for $231000 and Paid-in Capital from Treasury Stock for $77000.
Endless Company provided the following shareholders Problem 18-2 (ACP) equity on December 31, 2021: Preference share capital, l12% P100 par Ordinary share capital, P100 Share premium Retained earnings 1,000,000 4,000,000 2,000,000 1,000,000 Dividends have been paid on the preference share un in December 31, 2019. Required: Compute the book value per ordinary share and pen preference share under each of the following conditions with respect to preference share: a. Cumulative and fully participating b. Cumulative and fully participating after ordinary share receives 15%: c. Cumulative and participating up to l16% d. Cumulative and nonparticipating e. Noncumulative and nonparticipating
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Ayayai Company’s net income for 2020 is $52,900. The only potentially dilutive securities outstanding were 1,040 options issued during 2019, each exercisable for one share at $6. None has been exercised, and 10,900 shares of common were outstanding during 2020. The average market price of Ayayai’s stock during 2020 was $20.(a) Compute diluted earnings per share. Diluted earnings per share $
Blabla Grocery Inc., reported the following financial information on December 31, 2019: Common shares issued and outstanding throughout 2019 700,000 shares 6% nonconvertible cumulative preferred shares capital $450,000 Retained Earnings on January 1. 2019 $3,500,000 Basic EPS for 2019 $0.99 per share In addition, the company did not declare any dividends for either 2018 or 2019. The amount which the company would report as Retained Earnings on December 31, 2019 would be: Select one: a. $673,000. b. $693,000. c. $4,220,000. d. $4,173,000. e. $4,166,000.
Accounting Madison Co had the following components of shareholders' equity at the beginning of 2020: Preferred shares, Class B, no par, $2, non-cumulative, redeemable $2,000,00 and retractable, 400,000 authorized, 100,000 issued and outstanding Common shares, unlimited number authorized, 600,000 issued and outstanding Retained earnings 6,000,000 11,400,000 The following events took place during 2020: Jan Issuance of 50,000, $3 cumulative preferred shares - Class C for $30 per 22 share Apr 3 10% common stock dividend declared and issued Oct Common dividends declared and paid by Board of Directors of $1.50 per 10 share Nov 5 Repurchase of 10,000 $2 no par value preferred shares for $26.50 per share Required: Prepare the financing activities section of the cash flow statement for the year ended December 31, 2020.
Calculate: -cost of common equity from retained earnings, using the CAPM method. - cost of new common stock based on the CAPM
Oriole, Inc. had the following equity investment portfolio at January 1, 2020. Evers Company 970 shares @ $14 each $13,580 Rogers Company 910 shares @ $18 each 16,380 Chance Company 500 shares @ $9 each 4,500 Equity investments @ cost 34,460 Fair value adjustment (7,840 ) Equity investments @ fair value $26,620 During 2020, the following transactions took place. 1. On March 1, Rogers Company paid a $2 per share dividend. 2. On April 30, Oriole, Inc. sold 290 shares of Chance Company for $11 per share. 3. On May 15, Oriole, Inc. purchased 90 more shares of Evers Company stock at $17 per share. 4. At December 31, 2020, the stocks had the following price per share values: Evers $18, Rogers $17, and Chance $8. During 2021, the following transactions took place. 5. On February 1, Oriole, Inc. sold the remaining Chance shares for $8 per share. 6. On March 1, Rogers Company paid a $2 per share dividend.…

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