On December 31, 2005, the Mama Company had 50.000 ordinary shares issued and outstanding. On April 1. 2006. additional 10,000 ordinary shares were issued. dividend was declared. On December 1. 2006. a 20% stock Mama's net income for the year ended December 31, 2006 was P172,500. During 2006, Mama declared and paid P100,000 cash dividends on its hon-convertible preference share. The eamings per ordinary share, rounded to the nearest centavo, for the year ended December 31, 2006 should be P1.26. 3. b. PI.32. C. P3.00. d. P1.05. 20
On December 31, 2005, the Mama Company had 50.000 ordinary shares issued and outstanding. On April 1. 2006. additional 10,000 ordinary shares were issued. dividend was declared. On December 1. 2006. a 20% stock Mama's net income for the year ended December 31, 2006 was P172,500. During 2006, Mama declared and paid P100,000 cash dividends on its hon-convertible preference share. The eamings per ordinary share, rounded to the nearest centavo, for the year ended December 31, 2006 should be P1.26. 3. b. PI.32. C. P3.00. d. P1.05. 20
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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Multiple choice pls answer numbers 20-22
Transcribed Image Text:Gross Profit Variation Analysis and Earnings Per Share Determination
271
C.
P3.74
d.
P4.73
On December 31, 2005, the Mama Company had 50.000 ordinary
shares issued and outstanding. On April 1. 2006. additional 10,000
ordinary shares were issued.
dividend was declared.
On December 1. 2006. a 20% stock
Mama's net income for the year ended December 31, 2006 was
P172,500. During 2006, Mama dcclared and paid P100,000 cash
dividends on its bon-convertible preference share.
The eamings per ordinary share, rounded to the nearest centavo, for
the year ended December 31, 2006 should be
P1.26.
3.
b.
P1.32.
C.
P3.00.
d.
P1.05.
21. Falcon Company has 2,500,000 ordinary shares outstanding on
December 31, 2004.
issued on April 2, 2005, and 250,000 morc on July 2, 2005.
October 1, 2005, Falcon issued S,000 PI,000 face value, 7%
convertible bonds.
An additional 500,000 ordinary shares were
On
Each bond is dilutive and convertible into 40
No bonds were converted into ordinary shares in
ordinary shares.
2005. What is the number of shares to be used in computing basic
earnings per share and diluted earnings per share, respectively, for the
year ended December 31, 2005?
2,875,000 and 2,925,000
b. 2,875,000 and 3,075,000
3,000,000 and 3,050,000
d. 3,000,000 and 3,200,000
a.
с.
At December 3 1, 2005, Garcia Corporation had 90,000 ordinary shares
and 20,000 shares of convertibie preference shares outstanding, in
addition to 9% convertible bonds payable in the face amount of
P2,000,000. During 2005, Garcia paid dividends of P2.50 per share on
the prefereice shares. The preference share is convertible into 20,000
ordinary sharw. The 9% convertible bonds are convertible into 30,000
ordinary sharea. Net income for 2005 was P970,000. Assume an
income tax rate of 30%. How much is the diluted carnings per share
for the year onded Docember 31, 2005?
22.
20
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