XYZ Corporation reported net income of $6 million for the year ended 2021. It has 900,000 shares of common stock and 50,000 shares of non-cumulative, non-convertible,9% preferred stockoutstanding throughout the year.At the beginning of the year the corporation issued $2 million of 5% convertible bonds,each $1,000 bond convertible into 5 shares of common. XYZ Corporation's income tax rate is 20%Calculate XYZ Corporation's 2021 diluted EPS, assuming the company paid annual cash dividend of $450,000 and $150,000 to common and preferred stockholders', respectively.$6.22$6.52$6.25$6.43

First, we need to calculate the net income available to common stockholders. This is done by…

Answered: XYZ Corporation reported net income of…

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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The Namleda Corporation has an income statement that indicates thatoperating income is $2,375,486 and pays interest of $100,000 and taxes of$900,000. The corporation currently has an average of 3 million shares ofcommon stock outstanding and 1 million shares of preferred stock, whichpays a dividend of $1.00 per share. What is the corporation’s approximateearnings per share?
A corporation earns $8.30 per share before taxes. The corporate tax rate is 39%, the personal tax rate on dividends is 15%, and the personal tax rate on non-dividend income is 36%. What is the total amount of taxes paid per share if the company has a payout ratio of 45%? Answer to two decimals (dollars and cents)
Metlock Corporation had net income for the current fiscal year of $ 952, 200, and common shares outstanding of 92,000. There were no changes to Metlock's common shares during the year.Metlock also had outstanding a $1,000,000,9 % bond sold in a previous year that was convertible to 82,000 common shares. In addition, Metlock sold a new bond on October 1 of the current year. The new bond was a $1,000,000, 13% bond, convertible to 76,000shares. Metlock was subject to a tax rate of 27 %. Calculate diluted earnings per share. (Round calculations of EPS to 3 decimal places, e.g. 3.545 and provide final answer to 2 decimal places, e.g. 15.25.) Basic EPS Sub Total Diluted EPS $ $ Numerator Denominator $ $ EPS 11
The following statement of financial position information relates to Tufa Co, a company listed on a large stock market which pays corporation tax at a rate of 30%. $M $M Equity and Liabilities Share Capital 17 Retained Earnings 15 Total Equity 32 Non-Current Liabilities Long-Term Borrowings 13 Current Liabilities 21 Total Liabilities 34 Total Equity and Liabilities 66 The share capital of Tufa Co consists of $12M of ordinary shares and $5M of irredeemable preference shares. The orfinary shares of Tufa Co have a nominal value of $0.50 per share, an ex-divident market price of $7.07 per share and a cum dividend market price of $7.52 per share. The dividend for 20X7 will be paid in the near future. Dividends paid in recent years have been as follows: Year 20X6 20X5 20X4 20X3 Dividend ($/Share) 0.43 0.41 0.39 0.37…
Jerald Toy Corporation has 7% cost of debt, 11% cost of equity, and 8% cost of preferred stock. Jerald issued 104,000 common shares outstanding at P20 issue price per common share; 40,000 preference shares outstanding at P34 issue price per share; and, a bond issuance with a face value of P500,000 selling at 102% of face value. Jerald's Corporate tax rate is 34%. What is the WACC for Jerald? *
Quantitative Problem: Andrews Corporation has income from operations of $223,000. In addition, it received interest income of $22,300 and received dividend income of $31,100 from another corporation. Finally, it paid $11,600 of interest income to its bondholders and paid $46,800 of dividends to its common stockholders. The firm's federal tax rate is 21%. What is the firm's federal income tax? Do not round intermediate calculations. Round your answer to the nearest dollar.
During the year just ended, Spriha’s distribution had pretax earnings from operations of $2,290,000. In addition, during the year it received $150,000 in income from interest on bonds & received $88,000 in income from dividend on common stock holding in Microsoft. Spriha’s distribution company is in the 40% tax bracket & is eligible for 70% dividend exclusion.*Interest income received by the company is treated as ordinary income. a. Find the tax and after-tax amount attributable to the interest income.b. Find the tax and after-tax amount attributable to the dividend income
Blossom Corp. had $670,000 net income in 2025. On January 1, 2025, there were 180,000 shares of common stock outstanding. On April 1, 18,800 shares were issued and on September 1, Blossom bought 35,400 shares of treasury stock. There are 28,000 options to buy common stock at $40 a share outstanding. The market price of the common stock averaged $50 during 2025. The tax rate is 40%. In 2025, there were 44,000 shares of convertible preferred stock outstanding. The preferred is $100 par, pays an annual dividend of $3.50 per share, and is convertible into three shares of common stock. Blossom issued $1,800,000 of 8% convertible bonds at face value during 2024. Each $1,000 bond is convertible into 30 shares of common stock. Complete the schedule and compute diluted earnings per share for 2025. (Round EPS answers to 2 decimal places, e.g. 52.75 and other answers to O decimal places, e.g. 5241. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses…
2. Oppnox Company reported net income of $750,000 for the year ended 31 December 20X1. The company had a weighted average of 690,000 shares of common stock outstanding. In addition, the company has only one potentially dilutive security: $50,000 of 6 percent convertible bonds, convertible into a total of 10,000 shares. Assuming a tax rate of 30 percent, calculate Oppnox's basic and diluted EPS.
Rudyard Corporation had 130,000 shares of common stock and 13,000 shares of 8%, $100 par convertible preferred stock outstanding during the year. Net income for the year was $430,000 and dividends were paid to both common and preferred shareholders. Rudyard's effective tax rate is 25%.What is Rudyard's basic EPS? Multiple Choice $2.51. $2.28. $4.11. $3.31.
Online Network Inc. has a net income of $700,000 in the current fiscal year. There are 100,000 shares of common stock outstanding, along with convertible bonds, which have a total face value of $1.5 million. The $1.5 million is represented by 1,500 different $1,000 bonds. Each $1,000 bond pays 6 percent interest. The conversion ratio is 10. The firm is in a 20 percent tax bracket. a. Compute basic earnings per share. (Do not round intermediate calculations and round your answer to 2 decimal places.) Basic earnings per share C b. Compute diluted earnings per share. (Do not round intermediate calculations and round your answer to 2 decimal places.) 200 Diluted earnings per share
BSF Co., which produces and sells skiing equipment, is financed as follows: Bonds payable, 8% (issued at face amount) $7,500,000 Preferred 2% stock, $10 par 7,500,000 Common stock, $50 par 7,500,000 Income tax is estimated at 40% of income. Round your answers to the nearest cent. a. Determine the earnings per share of common stock, assuming that the income before bond interest and income tax is $1,000,000.$ b. Determine the earnings per share of common stock, assuming that the income before bond interest and income tax is $3,000,000.$ c. Determine the earnings per share of common stock, assuming that the income before bond interest and income tax is $4,500,000.$

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