Date Share Changes Shares Outstanding January 1 Beglnning balance 210 000 April 1 Issued 27 000 shares July 1 6-for-1 share spllt took place September 1 Purchased 9 000 shares December 31 Issued 15 000 shares luffy Corporation has a net Income of €865 980 and a tax rate of 10%. Its only convertible Instruments re 27 000 outstanding warrants (Issued prior to 2015) that can each be converted to one ordinary nare at an exercise price of €12. The average falr value of Fluffy's share during 2015 Is €20
Date Share Changes Shares Outstanding January 1 Beglnning balance 210 000 April 1 Issued 27 000 shares July 1 6-for-1 share spllt took place September 1 Purchased 9 000 shares December 31 Issued 15 000 shares luffy Corporation has a net Income of €865 980 and a tax rate of 10%. Its only convertible Instruments re 27 000 outstanding warrants (Issued prior to 2015) that can each be converted to one ordinary nare at an exercise price of €12. The average falr value of Fluffy's share during 2015 Is €20
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Case: Fluffy Corporation (questions 4 - 5)
Fluffy Corporation has changes In Its ordinary shares outstanding for the year 2015, as Illustrated In the
table below.
20
Date
Share Changes
Shares Outstanding
January 1
Beginning balance
210 000
24
April 1
Issued 27 000 shares
July 1
6-for-1 share split took place
September 1
Purchased9 000 shares
December 31
Issued 15 000 shares
Fluffy Corporation has a net Income of €865 980 and a tax rate of 10%. Its only convertible Instruments
are 27 000 outstanding warrants (Isued prior to 2015) that can each be converted to one ordinary
share at an exercise price of €12. The average falr value of Fluffy's share during 2015 Is €20.
Calculate the 2015 diluted EPS for Fluffy Corporation, assuming the company uses the if-converted
and treasury-share method for warrants. Also assume the resulting shares are subject to the share
split on July 1.
Provide the numerator and denominator for your calculation of diluted EPS
[Round the numerator and denominator to the nearest Integer, if applicable. Round diluted EPS to the
nearest cent.]
Numerator = €
Denominator% =
Diluted EPS = €](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2e45d4ed-0ab6-4636-b18f-4efb728e6168%2Fcb26f040-470f-4bc2-8dea-62568ce12364%2Fy7bxjbh_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Case: Fluffy Corporation (questions 4 - 5)
Fluffy Corporation has changes In Its ordinary shares outstanding for the year 2015, as Illustrated In the
table below.
20
Date
Share Changes
Shares Outstanding
January 1
Beginning balance
210 000
24
April 1
Issued 27 000 shares
July 1
6-for-1 share split took place
September 1
Purchased9 000 shares
December 31
Issued 15 000 shares
Fluffy Corporation has a net Income of €865 980 and a tax rate of 10%. Its only convertible Instruments
are 27 000 outstanding warrants (Isued prior to 2015) that can each be converted to one ordinary
share at an exercise price of €12. The average falr value of Fluffy's share during 2015 Is €20.
Calculate the 2015 diluted EPS for Fluffy Corporation, assuming the company uses the if-converted
and treasury-share method for warrants. Also assume the resulting shares are subject to the share
split on July 1.
Provide the numerator and denominator for your calculation of diluted EPS
[Round the numerator and denominator to the nearest Integer, if applicable. Round diluted EPS to the
nearest cent.]
Numerator = €
Denominator% =
Diluted EPS = €
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