The following information was extracted from MSU Inc.'s 2020 annual report: Common stock -100 million shares outstanding Preferred stock ($10 par, 10%, convertible into 2 shares of common stock) - 50 million shares outstanding Options - 1 million options, each to purchase one common share at $50 per share Market price of stock - Beginning of year $73; End of year $81; Average for year = $78 %3! %3! %3D Preferred dividends paid =$50 million Net income for 2020 = $400 million %3D Diluted earnings per share for 2020 is O a. $2.03 O b. $3.49 O c. $3.07 O d. $2.99

The following information was extracted from MSU Inc.'s 2020 annual report: Common stock -100 million shares outstanding Preferred stock ($10 par, 10%, convertible into 2 shares of common stock) - 50 million shares outstanding Options - 1 million options, each to purchase one common share at $50 per share Market price of stock - Beginning of year $73; End of year $81; Average for year = $78 %3! %3! %3D Preferred dividends paid =$50 million Net income for 2020 = $400 million %3D Diluted earnings per share for 2020 is O a. $2.03 O b. $3.49 O c. $3.07 O d. $2.99

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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Required:1. Indicate the amount of annual dividend on each issue of the preferred shares by completingthe last column of the above table 2. Assume that there are one year of dividends in arrears at the beginning of 2020, and Essexdeclared total dividends of $40,000 in 2020. What is the amount of dividends that thecommon shareholders will receive in 2020?
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what are the dividends allocated to common stock? check pic
On June 30, 2021, when ABC Co. stock was selling for $65 each, the equity accounts had the following balances: Common Stock ($50 par value, 50,000 issued) $2,500,000 Capital Contributed in Excess of Par Value—Common Stocks 600,000 Retained Earnings 4,200,000 How much will the Common Stock account balance be after declaring and distributing a 100% stock dividend? a. $5,000,000. b. $7,300,000. c. $2,500,000.
Company has two classes of capital stock outstanding: 8%, $20 par preferred and $5 par common. At December 31, 2025, the following accounts were included in the stockholders' equity. Preferred Stock, 148,200 shares $2,964,000 Common Stock, 1,991,000 shares 9,955,000 Paid-in Capital in Excess of Par--Preferred Stock 207,000 Paid-in Capital in Excess of Par--Common Stock 26,478,000 Retained Earnings 4,495,000 The following transactions affected stockholders' equity during 2026. Jan. 1 29,200 shares of preferred stock issued at $23 per share. Feb. 1 46,100 shares of common stock issued at $21 per share. June 1 2-for-1 stock split (par value reduced to $2.50). July 1 28,900 shares of common treasury stock purchased at $10 per share. Blossom uses the cost method. Sept.15 9,200 shares of treasury stock reissued at $12 per share. Dec. 31 The preferred dividend is declared, and a common dividend of 53 cents per share is declared. Dec. 31 Net income is $2,138,000. Prepare the stockholders'…
bBramble Corporation’s December 31, 2020 balance sheet showed the following: 7% preferred stock, $20 par value, 18300 shares authorized; 13300 shares issued $ 266000 Common stock, $10 par value, 1930000 shares authorized; 1880000 shares issued, 1860000 shares outstanding 18800000 Paid-in capital in excess of par—preferred stock 59500 Paid-in capital in excess of par—common stock 24900000 Retained earnings 7670000 Treasury stock (19800 shares) 623700 Bramble’s total stockholders’ equity was $44051800. $51695500. $52331800. $51071800.
The stockholders’ equity section of Hendly Corporation appears below as of December 31, 2020. 8% preferred stock, $50 par value, authorized 100,000 shares, outstanding 90,000 shares $ 4,500,000 Common stock, $1.00 par, authorized and issued 10 million shares 10,000,000 Additional paid-in capital 20,500,000 Retained earnings (includes 2020 net income of $33,000,000) 167,000,000 Net income $202,000,000 Net income for 2020 reflects a total effective tax rate of 20%. Included in the net income figure is a loss of $18,000,000 (before tax) as a result of a non-recurring major casualty. Preferred stock dividends of $360,000 were declared and paid in 2020. Dividends of $1,000,000 were declared and paid to common stockholders in 2020. Instructions Compute earnings per share data as it should appear on the income statement of Hendly Corporation.
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On June 30, 2020, when ABC shares were selling for $ 65 each, the equity accounts had the following balances: Common shares (par value $ 50: 50,000 issued) $ 2,500,000 Capital contributed in excess of par value 600,000 Retained earnings 4,200,000 A 100% share dividend is declared and distributed, the balance of the Common Shares account after recording the dividend will be: a. $2,500,000 b. $7,300,000 c. $3,100,000 d. $5,000,000
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Computing EPS: Convertible Preferred Stock Charter Company earned net income of $48,000 in 2020. The company had 10,000 shares of common stock outstanding during the year and 1,000 shares of noncumulative preferred stock, each convertible into 5 shares of common stock with $10 par value per share. The relevant tax rate is 25%. During the year, Charter Company declared and paid $5,000 in preferred dividends and no common stock dividends. a. Compute basic earnings per share. b. Compute diluted earnings per share. Note: Enter the earnings per share amounts in dollars and cents, rounded to the nearest penny. Net Income Available to Weighted Avg. Common Shares Outstanding Per Common Stockholders Share Basic EPS 2$ $ Diluted EPS $
Coronado Corporation’s December 31, 2020 balance sheet showed the following: 9% preferred stock, $20 par value, cumulative, 15100 shares authorized; 5100 shares issued $ 102000 Common stock, $10 par value, 1010000 shares authorized; 960000 shares issued, 930000 shares outstanding 9600000 Paid-in capital in excess of par—preferred stock 28000 Paid-in capital in excess of par—common stock 11460000 Retained earnings 3790000 Treasury stock (15100 shares) 317100 Coronado’s total paid-in capital was $20872900. $11240000. $21190000. $21507100.