Denjar Information concerning the number of options granted and common share prices follows:Date GrantedDecember 31, 2022December 31, 2023December 31, 2024•Options Granted(adjusted forthe stockdividend)8,0003,0006,500Share Price$ 24$ 33$ 32The market price of the common stock averaged $32 per share during 2024.• On July 12, 2022, Dow issued $800,000 of convertible 8% bonds at face value.•Each $1,000 bond is convertible into 30 common shares (adjusted for the stock dividend).Required:Compute Dow's basic and diluted earnings per share for the year ended December 31, 2024.Note: Do not round intermediate calculations. Except for per share amounts, enter youranswers in thousands (i.e., 10,000 should be entered as 10). Round "Earnings per share"answer to 2 decimal places.× Answer is complete but not entirely correct.NumeratorDow's basic$2,025÷Dow's dilutedSA$2,025 x ÷DenominatorIIEarnings pershare675=$3.00677 X =$2.99 X

We must determine the earnings attributable to common shareholders (numerator) and the weighted…

Answered: Information concerning the number of…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter20: Financing With Derivatives

Section: Chapter Questions

Problem 4P

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You have been provided with the following information for the year ended 30 June 2022 for ABCLtd:RNet profit for the year -R1 800 000Weighted average number of shares (WANOS) outstanding during the year-R 120 000Average fair value per share -R30.00Weighted average number of shares (WANOS) under option during the year -R25 000Exercise price for shares under option during the year -R28.00REQUIRED:Q.2.1 Explain the purpose and objective of disclosing diluted earnings per share.
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1. Determine the amount of the ordinary share capital at the end of 2021. 2. Total share premium account by the end of December 31, 2021 is?3. The amount to be added/deducted to retained earnings as a result of the equity swap is?
Assume company Z issued 1,000 call stock options at the beginning of year 2021; the exercise price is = $20. The Basic EPS = $2.5 = 25,000/10,000 (with a net income of $25,000 and WACS of 10,000). The average share price equals $30 currently. The diluted eps is: O a. 2.419 O b. 2.5 O c. 2.403 O d. 2.7 O e None of the above Refer to Q17. In addition to the stock option, the company issued 100 convertible bonds sold at par at the beginning of the year. Each bond is valued at $100 and gives the bondholder the right to convert each bond to 1 common shares. Coupon rate is 5% and the tax rate 30%. The diluted eps is O a. 2.5 O b. 2.419 O c. 2.403 O d. 2.7 O e. 2.65 Refer to Q17 and Q18. Assume that that the bonds were issued at par on June 30, 2021 with a 1% coupon rate instead of 5%. What would be the diluted EPS for company Z? O a 2.419 O b. 2.5 O c. 2.403 O d. 1.929 Oe. None of the above
Template Company provided the following concerning marketable equity securities held as "trading." 1. The entity carried the following securities on December 31, 2022: 2. On June 30, 2023, the entity sold all the B ordinary shares for P140,000. 3. On December 31, 2023, the securities are quoted as follows: A ordinary - 4,000 shares B ordinary - 1,000 shares C preference - 2,000 shares A ordinary - 4,000 shares C preference -2,000 shares Requirement: Complete the table below. Write zero (0) if it is not applicable. Statement of Financial Position Investments - FVPL Statement of Changes in Equity Retained earnings Statement of Income Unrealized gain/(loss) Realized gain/(loss) Acquisition Date [a] [d] [9] 0] Cost 330,000 200,000 300,000 830,000 Market P80 per share P180 per share December 31, 2022 300,000 160,000 310,000 770,000 [b] [e] [h] [k] December 31, 2023 [c] [U] 0 [0]
1. Determine the total retained earnings as of December 31, 2020. choices: 780,000 858,000 580,500 730,500 2. Determine the total share premium as of December 31, 2020. 8,396,950 8,419,450 8,402,800 8,219,650
N1. Account
Raun Company had the following equity items as of December 31, 2019: Preferred stock, 9% cumulative, 100 par, convertible Paid-in capital in excess of par value on preferred stock Common stock, 1 stated value Paid-in capital in excess of stated value on common stock| Retained earnings The following additional information about Raun was available for the year ended December 31, 2019: 1. There were 2 million shares of preferred stock authorized, of which 1 million were outstanding. All 1 million shares outstanding were issued on January 2, 2016, for 120 a share. The preferred stock is convertible into common stock on a 1-for-1 basis until December 31, 2025; thereafter, the preferred stock ceases to be convertible and is callable at par value by the company. No preferred stock has been converted into common stock, and there were no dividends in arrears at December 31, 2019. 2. The common stock has been issued at amounts above stated value per share since incorporation in 2002. Of the 5 million shares authorized, 3,580,000 were outstanding at January 1, 2019. The market price of the outstanding common stock has increased slowly but consistently for the last 5 years. 3. Raun has an employee share option plan where certain key employees and officers may purchase shares of common stock at 100% of the marker price at the date of the option grant. All options are exercisable in installments of one-third each year, commencing 1 year after the date of the grant, and expire if not exercised within 4 years of the grant date. On January 1, 2019, options for 70,000 shares were outstanding at prices ranging from 47 to 83 a share. Options for 20,000 shares were exercised at 47 to 79 a share during 2019. During 2019, no options expired and additional options for 15,000 shares were granted at 86 a share. The 65,000 options outstanding at December 31, 2019, were exercisable at 54 to 86 a share; of these, 30,000 were exercisable at that date at prices ranging from 54 to 79 a share. 4. Raun also has an employee share purchase plan whereby the company pays one-half and the employee pays one-half of the market price of the stock at the date of the subscription. During 2019, employees subscribed to 60,000 shares at an average price of 87 a share. All 60,000 shares were paid for and issued late in September 2019. 5. On December 31, 2019, there was a total of 355,000 shares of common stock set aside for the granting of future share options and for future purchases under the employee share purchase plan. The only changes in the shareholders equity for 2019 were those described previously, the 2019 net income, and the cash dividends paid. Required: Prepare the shareholders equity section of Rauns balance sheet at December 31, 2019. Substitute, where appropriate, Xs for unknown dollar amounts. Use good form and provide full disclosure. Write appropriate notes as they should appear in the publisher financial statements.
Calculating the Number of Shares Issued Castalia Inc. issued shares of its $0.80 par value common stock on September 4, 2019, for $8 per share. The Additional Paid-In Capital-Common Stock account was credited for 5612,000 in the journal entry to record this transaction. Required: How many shares were issued on September 4, 2019?
Solve following numerical
Airways common stock is currently priced at $39. its 8 percent convertible debentures issued at their $1,000 par and are currently priced at $1,050. Each debenture can be converted into 25 shares of common stock at any time before 2010. What is the conversion value of the bond? a. $1,000 b. $975 c. $900 d. $1,050
Pupil, Inc. prepares this journal entry on June 30, 2019. Issued ordinary share capital for P140/share. DR Cash P70,000 CR Ordinary share capital P65,000 CR Ordinary share premium P5,000. How many shares were issued? Using data above, what is the par value per share for this share capital?

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