Answered: What is the number of shares to be used…

Business

Accounting

What is the number of shares to be used in computing diluted earnings per share for the yea

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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Anderson Steel Company began 2018 with 600,000 shares of common stock outstanding. On March 31, 2018,100,000 new shares were sold at a price of $45 per share. The market price has risen steadily since that time toa high of $50 per share at December 31. No other changes in shares occurred during 2018, and no securities areoutstanding that can become common stock. However, there are two agreements with officers of the company forfuture issuance of common stock. Both agreements relate to compensation arrangements reached in 2017. Thefirst agreement grants to the company president a right to 10,000 shares of stock each year the closing market priceis at least $48. The agreement begins in 2019 and expires in 2022. The second agreement grants to the controller aright to 15,000 shares of stock if she is still with the firm at the end of 2026. Net income for 2018 was $2,000,000.Required:Compute Anderson Steel Company’s basic and diluted EPS for the year ended December 31, 2018.
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Anderson Steel Company began 2021 with 500,000 shares of common stock outstanding. On March 31, 2021, 160,000 new shares were sold at a price of $70 per share. The market price has risen steadily since that time to a high of $75 per share at December 31. No other changes in shares occurred during 2021, and no securities are outstanding that can become common stock. However, there are two agreements with officers of the company for future issuance of common stock. Both agreements relate to compensation arrangements reached in 2020. The first agreement grants to the company president a right to 32,000 shares of stock each year the closing market price is at least $73. The agreement begins in 2022 and expires in 2025. The second agreement grants to the controller a right to 37,000 shares of stock if she is still with the firm at the end of 2029. Net income for 2021 was $4,200,000. Required: Compute Anderson Steel Company's basic and diluted earnings per share for the year ended December…
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A company reported $450,375 of profit for 2023. It also declared $64,000 of dividends on preferred shares for the same year. At the beginning of 2023, the company had 80,000 outstanding common shares. These three events changed the number of outstanding shares during the year: June 1 Sold 34,000 common shares for cash. Aug. 31 Purchased and retired 25,000 common shares. Oct. 1 Completed a three-for-one share split. a. What is the amount of profit available for distribution to the common shareholders? Earnings available to common shareholders b. What is the weighted-average number of common shares for the year? Weighted-average outstanding shares $ 386,375 c. What is the earnings per share for the year? (Round the final answer to 2 decimal places.) Earnings per share
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Agee Storage issued 28 million shares of its $1 par common stock at $13 per share several years ago. Last year, for the first time, Agee reacquired 1 million shares at $11 per share. If Agee now retires 1 million shares at $16 per share. By what amount will Agee's total paid-in capital decline? (Enter your answer in millions (i.e., 10,000,000 should be entered as 10).) Total paid-in capital will decline by million
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Enterprise Storage Company has 450,000 shares of cumulative preferred stock outstanding, which has a stated dividend of $8.75. It is six years in arrears in its dividend payments. Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods.a. How much in total dollars is the company behind in its payments? (Do not round intermediate calculations. Input your answer in dollars, not millions (e.g., $1,234,000).) Dividend in arrears b. The firm proposes to offer new common stock to the preferred stockholders to wipe out the deficit. The common stock will pay the following dividends over the next four years: D1 $ 1.20 D2 1.30 D3 1.40 D4 1.50 The company anticipates earnings per share after four years will be $4.10 with a P/E ratio of 11.The common stock will be valued as the present value of future dividends plus the present value of the future stock price…
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