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 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
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?
Options were granted on January 1, 2023by Paltel Co. to purchase 15,000 common shares at an exercise price of $22. The average market price of Paltel's common stock during 2023 was $30 per share. Calculate the incremental shares (denominator) for these options on December 31, 2023.
Instructions: Compute the basic EPS and diluted EPS for Paden Corporation for 2024. Round to two decimal places. Show all computations. Please dont gie solutions in image format
36. Subject : - Accounting
You have been provided with the following information for Company 123 for the year 2020:Net income $ 4,800,000Number of common shares outstanding 1,200,000 shares10%, cumulative preferred shares, convertible into 120,000 common shares $ 1,800,0008% convertible bonds; convertible into 100,000 common shares $ 9,500,000360,000 call options exercisable at $ 26 per shareAdditional information1. The common and preferred shares and the convertible bonds were outstanding from thebeginning of the year.2. In 2020, a $ 1, 500,000 dividend was declared and distributed; however, no dividends weredeclared in 2019.3. The average market price of the common shares in 2020 was $ 0. The stock price was $ 27on January 1, 2020, and $ 5 on December 31, 2020.4. The convertible bonds were sold at par.5. The income tax rate for 2020 is 40%.Required:a) Calculate basic earnings per shareb) Calculate diluted earnings per sharec) Why is earnings per share useful? What is the additional importance of…
U the common shares is $165 each and market price of the preferred is $230 each. (Round to nearest dollar.) b. Prepare the journal entry for the issuance when only the market price of the common stock is known and it is $170 per share. E14.6 (LO 1, 2) (Stock Issuances and Repurchase) Lindsey Hunter Corporation is authorized to issue 50,000 shares of $5 par value common stock. During 2025, Lindsey Hunter took part in the following selected transactions. a. Issued 5,000 shares of stock at $45 per share, less costs related to the issuance of the stock totaling $7,000. b. Issued 1,000 shares of stock for land appraised at $50,000. The stock was actively traded on a national stock exchange at approximately $46 per share on the date of issuance. c. Purchased 500 shares of treasury stock at $43 per share. The treasury shares purchased were issued in 2021 at $40 per share. d. Retired the treasury shares purchased in part (c). Instructions Prepare the journal entries to record these…
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Book value of common stockholders' equity of FedEx, May 31, 2020 (figures in $ millions) Common shares ($0.10 par value per share) $ 30 Additional paid-in capital 3,097 23,722 (7,756) (369) $ 18,724 Retained earnings Treasury shares at cost Other Net common equity Note: Authorized shares (millions) Issued shares, of which: Outstanding shares Treasury shares Required: a. Suppose that FedEx now issues 4 million shares at $180 a share. Update the table below with the new values. b. What would happen to the book value of common stockholders' equity if instead FedEx bought back 4 million shares at $180 per share? Complete this question by entering your answers in the tabs below. Required A Required B What would happen to the book value of common stockholders' equity if instead FedEx bought back 4 million shares at $180 per share? Note: Negative amounts should be indicated by a minus sign. Enter your answers in millions rounded to 1 decimal place. Common shares ($0.10 par value per share)…

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