Notes payable, 10% coupon, $1,000 par value Common stock, $1 par, 3,000,000 $500,000 shares authorized, 500,000 shares issued and outstanding Capital in excess of par Retained Earnings The following information is also provided: The income tax rate is 40%. The common stock was outstanding for all of 2010. Net income was $1,750,000 for 2010. No bonds or preferred stock were converted during 2010. Options were granted in July of 2009 to purchase 50,000 shares of common stock at $20 per share. The average market price of Blue Jay's common stock during 2010 was $30 per share. All of the options are still outstanding. Based on this dilutive EPS is closest to $2.50 $3.00 $3.50 $4.00 $1,000,000 $2,000,000 $9,000,000

Notes payable, 10% coupon, $1,000 par value Common stock, $1 par, 3,000,000 $500,000 shares authorized, 500,000 shares issued and outstanding Capital in excess of par Retained Earnings The following information is also provided: The income tax rate is 40%. The common stock was outstanding for all of 2010. Net income was $1,750,000 for 2010. No bonds or preferred stock were converted during 2010. Options were granted in July of 2009 to purchase 50,000 shares of common stock at $20 per share. The average market price of Blue Jay's common stock during 2010 was $30 per share. All of the options are still outstanding. Based on this dilutive EPS is closest to $2.50 $3.00 $3.50 $4.00 $1,000,000 $2,000,000 $9,000,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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None
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