Sunland Corporation earned net income of $363,460 in 2025 and had 100,000 shares of common stock outstanding throughout the year. Also outstanding all year was $800,000 of 5% bonds, which are convertible into 17,000 shares of common. Sunland's tax rate is 20 percent. Compute Sunland's 2025 diluted earnings per share. (Round answer to 2 decimal places, e.g. 3.55.) Diluted earnings per share $

Sunland Corporation earned net income of $363,460 in 2025 and had 100,000 shares of common stock outstanding throughout the year. Also outstanding all year was $800,000 of 5% bonds, which are convertible into 17,000 shares of common. Sunland's tax rate is 20 percent. Compute Sunland's 2025 diluted earnings per share. (Round answer to 2 decimal places, e.g. 3.55.) Diluted earnings per share $

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 55E: Rebert Inc. showed the following balances for last year: Reberts net income for last year was...

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Rebert Inc. showed the following balances for last year: Reberts net income for last year was 3,182,000. Refer to the information for Rebert Inc. above. Also, assume that the dividends paid to common stockholders for last year were 2,600,000 and that the market price per share of common stock is 51.50. Required: 1. Compute the dividends per share. 2. Compute the dividend yield. (Note: Round to two decimal places.) 3. Compute the dividend payout ratio. (Note: Round to two decimal places.)
Rebert Inc. showed the following balances for last year: Reberts net income for last year was 3,182,000. Refer to the information for Rebert Inc. above. Also, assume that the market price per share for Rebert is 51.50. Required: 1. Compute the dollar amount of preferred dividends. 2. Compute the number of common shares. 3. Compute earnings per share. (Note: Round to two decimals.) 4. Compute the price-earnings ratio. (Note: Round to the nearest whole number.)
Errol Corporation earned net income of $200,000 this year. The company began the year with 10,000 shares of common stock and issued 5,000 more on April 1. They issued $7,500 in preferred dividends for the year. What is the numerator of the EPS calculation for Errol?
Given the following year-end information, compute Greenwood Corporations basic and diluted earnings per share. Net income, 15,000 The income tax rate, 30% 4,000 shares of common stock were outstanding the entire year. shares of 10%, 50 par (and issuance price) convertible preferred stock were outstanding the entire year. Dividends of 2,500 were declared on this stock during the year. Each share of preferred stock is convertible into 5 shares of common stock.
Lyon Company shows the following condensed income statement information for the year ended December 31, 2019: Lyon declared dividends of 6,000 on preferred stock and 17,280 on common stock. At the beginning of 2019, 10,000 shares of common stock were outstanding. On May 1, 2019, the company issued 2,000 additional common shares, and on October 31, 2019, it issued a 20% stock dividend on its common stock. The preferred stock is not convertible. Required: 1. Compute the 2019 basic earnings per share. 2. Show the 2019 income statement disclosure of basic earnings per share. 3. Draft a related note to accompany the 2019 financial statements.
The Castle Company recently reported net profits after taxes of $15.8 million. It has 2.5 million shares of common stock outstanding and pays preferred dividends of $1 million a year. The company’s stock currently trades at $60 per share. Compute the stock’s earnings per share (EPS). What is the stock’s P/E ratio? Determine what the stock’s dividend yield would be if it paid $1.75 per share to common stockholders.
Bastion Corporation earned net income of $200,000 this year. The company began the year with 10,000 shares of common stock and issued 5,000 more on April 1. They issued $7,500 in preferred dividends for the year. What is the EPS for the year for Bastion?
Tamarisk Corporation reported net income of $398,120 in 2025 and had 206,000 shares of common stock outstanding throughout the year. Also outstanding all year were 34,500 options to purchase common stock at $11 per share. The average market price of the stock during the year was $15. Compute diluted earnings per share. (Round answer to 2 decimal places, e.g. 3.55.) Diluted earnings per share $
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 $
Metlock Company's net income for 2025 is $49,200. The only potentially dilutive securities outstanding were 1,100 options issued during 2024, each exercisable for one share at $6. None has been exercised, and 9,900 shares of common were outstanding during 2025. The average market price of Metlock's stock during 2025 was $15. 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 the 1,100 options were issued on October 1, 2025 (rather than in 2024). The average market price during the last 3 months of 2025 was $15. (Round answer to 2 decimal places, e.g. 2.55.) Diluted earnings per share $
Sheffield Company's net income for 2025 is $53,200. The only potentially dilutive securities outstanding were 1,000 options issued during 2024, each exercisable for one share at $6. None has been exercised, and 10,700 shares of common were outstanding during 2025. The average market price of Sheffield'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 the 1,000 options were issued on October 1, 2025 (rather than in 2024). The average market price during the last 3 months of 2025 was $25. (Round answer to 2 decimal places, e.g. 2.55.) Diluted earnings per share
Marigold Corporation had 2020 net income of $1,066,000. During 2020, Marigold paid a dividend of $2 per share on 36,350 shares of preferred stock. During 2020, Marigold had outstanding 301,000 shares of common stock.Compute Marigold’s 2020 earnings per share. (Round answer to 2 decimal places, e.g. 3.56.) Earnings per share $enter earnings per share in dollars rounded to 2 decimal places per share