On 1 October 2013, Hoy had R2-5 million of equity shares of 50 cents each in issue. No new shares were issued during the year ended 30 September 2014, but on that date there were outstanding share options to purchase 2 million equity shares at R1-20 each. The average market value of Hoy's equity shares during the year ended 30 September 2014 was R3 per share. Hoy's profit after tax for the year ended 30 September 2014 was R1 550 000. In accordance with IAS 33 Earnings per Share, what is Hoy's diluted earnings per share for the year ended 30 September 2014? Select one: O a. 25-0 cents O b. 41-9 cents O c. 31.0 cents O d. 22.1 cents

On 1 October 2013, Hoy had R2-5 million of equity shares of 50 cents each in issue. No new shares were issued during the year ended 30 September 2014, but on that date there were outstanding share options to purchase 2 million equity shares at R1-20 each. The average market value of Hoy's equity shares during the year ended 30 September 2014 was R3 per share. Hoy's profit after tax for the year ended 30 September 2014 was R1 550 000. In accordance with IAS 33 Earnings per Share, what is Hoy's diluted earnings per share for the year ended 30 September 2014? Select one: O a. 25-0 cents O b. 41-9 cents O c. 31.0 cents O d. 22.1 cents

Name: On 1 October 2013, Hoy had R2-5 million of equity shares of 50 cents
Uploaded: 2022-11-04T13:36:16.000Z
Channel: Bartleby
Description: On 1 October 2013, Hoy had R2-5 million of equity shares of 50 cents each in issue. No new shares were issued during the year ended 30 September 2014, but on that date therewere outstanding share options to purchase 2 million equity shares at R1.20

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Bonita Corporation earned net income of $443,000 in 2025 and had 110,000 shares of common stock outstanding throughout the year. Also outstanding all year was $700,000 of 5% bonds, which are convertible into 15,000 shares of common. Bonita's tax rate is 30 percent. Compute Bonita's 2025 diluted earnings per share. (Round answer to 2 decimal places, e.g. 3.55.) Diluted earnings per share $
Ayayai Company’s net income for 2020 is $52,900. The only potentially dilutive securities outstanding were 1,040 options issued during 2019, each exercisable for one share at $6. None has been exercised, and 10,900 shares of common were outstanding during 2020. The average market price of Ayayai’s stock during 2020 was $20.(a) Compute diluted earnings per share. Diluted earnings per share $
Please do not give solution in image format thanku
BubbleTree Inc. had a taxable income of $440,000 last year. Its average tax rate is 31% and it paid out $120,000 in dividends to preferred stockholders. The company has 12,000 shares of common stock outstanding. If BubbleTree pays out a dividend of $12.24 for each share of common stock, what are retained earnings?
At the beginning of 2025, Riverbed Industries had 25,000 shares of common stock issued and outstanding and 500 of $1,000,6% bonds (issued at par), each convertible into 10 shares of common stock. During 2025, Riverbed had revenues of $146,000 and expenses other than interest and taxes of $96,000. Assume that the tax rate is 20%. None of the bonds was converted or redeemed. (a) Compute diluted earnings per share for 2025. (Round answer to 2 decimal places, e.g. 2.55.) Earnings per share i $ D (b) Assume the same facts as those assumed for part (a), except that the 500 bonds were issued on September 1, 2025 (rather than in a prior year), and none have been converted or redeemed. Compute diluted earnings per share for 2025. (Round answer to 2 decimal places, e.g. 2.55.) Earnings per share $ Earnings per share 1.33 (c) Assume the same facts as assumed for part (a), except that 100 of the 500 bonds were actually converted on July 1, 2025. Compute diluted earnings per share for 2025. (Round…
Carla Corporation reported net income of $315,350 in 2020 and had 50,500 shares of common stock outstanding throughout the year. Also outstanding all year were 4,500 shares of cumulative preferred stock, each convertible into 2 shares of common. The preferred stock pays an annual dividend of $5 per share. Carla’s tax rate is 30%.Compute Carla’s 2020 diluted earnings per share. (Round answer to 2 decimal places, e.g. 3.55.) Diluted earnings per share $
Indigo Company's net income for 2025 is $641,000, and 79,000 shares of common stock were issued and outstanding during 2025. The only potentially dilutive securities outstanding were 27,000 executive stock options issued during 2024, each exercisable for one share at $19.50; none of these have been exercised. The average market price of Indigo's stock during 2025 was $25. (a) Compute diluted earnings per share. (Round answer to 2 decimal places, e.g. 2.55.) Diluted earnings per share $ (b) Assume the same facts as those assumed for part (a), except that 10,000 additional options were issued on October 1, 2025, with an exercise price of $26 (the market price of the common stock on that date). The average market price during the last 3 months of 2025 was $28.50. (Round answer to 2 decimal places, e.g. 2.55.) Diluted earnings per share $
Story Corporation had net income of $300,000 in 2018. The weighted average number of shares outstanding in 2018 was 100,000 shares. Donner Corporation's common stock is selling for $36 per share on the New York Stock Exchange. Story Corporation's price-earnings ratio is... O 10.0 times 12.0 times O 36.0 times 72.0 times
Colson Corp. had $750,000 net income in 2015. On January 1, 2015 there were 200,000 shares of common stock outstanding. On April 1, 23,000 shares were issued and on September 1, Colson bought 29,400 shares of treasury stock. On Oct 1, Colson declared a 10% Stock Dividend. As of Jan 1st, there are 28,000 stock options outstanding. The Option Exercise price was $40 per share and the market price of the common stock averaged $50 during 2015. The tax rate is 40%. During 2015, there were 40,000 shares of convertible preferred stock outstanding. The preferred is $100 par, pays $3.50 a year dividend, and is convertible into three shares of common stock. Colson issued $2,000,000 of 8% convertible bonds at face value during 2014. Each $1,000 bond is convertible into 30 shares of common stock. Instructions Compute Basic and Diluted earnings per share for 2015 in Good form, show all computations.
At the beginning of 2025, Bridgeport Industries had 26,000 shares of common stock issued and outstanding and 500 of $1,000, 6% bonds (issued at par), each convertible into 10 shares of common stock. During 2025, Bridgeport had revenues of $152,000 and expenses other than interest and taxes of $111,000. Assume that the tax rate is 20%. None of the bonds was converted or redeemed. (a) Compute diluted earnings per share for 2025. (Round answer to 2 decimal places, e.g. 2.55.) Earnings per share $ (b) Assume the same facts as those assumed for part (a), except that the 500 bonds were issued on September 1, 2025 (rather than in a prior year), and none have been converted or redeemed. Compute diluted earnings per share for 2025. (Round answer to 2 decimal places, e.g. 2.55.) Earnings per share $ 1.06 Earnings per share $ 1.04 (c) Assume the same facts as assumed for part (a), except that 100 of the 500 bonds were actually converted on July 1, 2025. Compute diluted earnings per share for…
Myers Drugs Inc. has 2.5 million shares of stock outstanding. Earnings after taxes are $6 million. Myers also has warrants outstanding that allow the holder to buy 100,000 shares of stock at $10 per share. The stock is currently selling for $50 per share. a. Compute basic earnings per share. (Do not round intermediate calculations and round your answer to 2 decimal places.) Basic earnings per share b. Compute diluted earnings per share considering the possible impact of the warrants. Assume the cash proceeds are used to repuchase shares. (Do not round intermediate calculations and round your answer to 2 decimal places.) Use the following formula: Earnings after taxes Shares outstanding + Assumed net increase in shares from the warrants Diluted earnings per share
At the beginning of 2017, Vincia Hill Industries had 25,000 shares of common stock issued and outstanding and 500 $1,000, 6% bonds, each convertible into 10 shares of common stock. During 2017, Vincia Hill had revenues of $160,000 and expenses other than interest and taxes of $100,000. Assume that the tax rate is 35%. None of the bonds was converted or redeemed. 1. Compute diluted earnings per share for 2017