Earnings per share: Earnings per share (EPS) indicates the income earned per share of common stock. EPS is calculated as Basic EPS and Diluted EPS. The income for EPS is calculated by subtracting the preference dividends. The weighted-average common shares outstanding are used to divide the income. This is Basic EPS. For the income statement presentation of earnings per share any losses from discontinued operations should be deducted from the income from discontinued operations to arrive at the net income. Given Information: Net income: $360,000. Shares outstanding: 100,000. Average market price: $15. Warrants exercised: 15,000. Par: $10. (a) To determine: To determine the warrants are dilutive.

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Answer 1

Question

Chapter 16, Problem 28E

To determine

Earnings per share: Earnings per share (EPS) indicates the income earned per share of common stock. EPS is calculated as Basic EPS and Diluted EPS. The income for EPS is calculated by subtracting the preference dividends. The weighted-average common shares outstanding are used to divide the income. This is Basic EPS. For the income statement presentation of earnings per share any losses from discontinued operations should be deducted from the income from discontinued operations to arrive at the net income.

Given Information: Net income: $360,000.

Shares outstanding: 100,000.

Average market price: $15.

Warrants exercised: 15,000.

Par: $10.

(a) To determine: To determine the warrants are dilutive.

To determine

(b) To compute: To compute earnings per share.

To determine

(c) To compute: To compute diluted earnings per share.

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Answer 2

Question

Chapter 16, Problem 28E

To determine

Earnings per share: Earnings per share (EPS) indicates the income earned per share of common stock. EPS is calculated as Basic EPS and Diluted EPS. The income for EPS is calculated by subtracting the preference dividends. The weighted-average common shares outstanding are used to divide the income. This is Basic EPS. For the income statement presentation of earnings per share any losses from discontinued operations should be deducted from the income from discontinued operations to arrive at the net income.

Given Information: Net income: $360,000.

Shares outstanding: 100,000.

Average market price: $15.

Warrants exercised: 15,000.

Par: $10.

(a) To determine: To determine the warrants are dilutive.

To determine

(b) To compute: To compute earnings per share.

To determine

(c) To compute: To compute diluted earnings per share.

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Answer 3

Question

Chapter 16, Problem 28E

To determine

Earnings per share: Earnings per share (EPS) indicates the income earned per share of common stock. EPS is calculated as Basic EPS and Diluted EPS. The income for EPS is calculated by subtracting the preference dividends. The weighted-average common shares outstanding are used to divide the income. This is Basic EPS. For the income statement presentation of earnings per share any losses from discontinued operations should be deducted from the income from discontinued operations to arrive at the net income.

Given Information: Net income: $360,000.

Shares outstanding: 100,000.

Average market price: $15.

Warrants exercised: 15,000.

Par: $10.

(a) To determine: To determine the warrants are dilutive.

To determine

(b) To compute: To compute earnings per share.

To determine

(c) To compute: To compute diluted earnings per share.

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Answer 4

Question

Chapter 16, Problem 28E

To determine

Earnings per share: Earnings per share (EPS) indicates the income earned per share of common stock. EPS is calculated as Basic EPS and Diluted EPS. The income for EPS is calculated by subtracting the preference dividends. The weighted-average common shares outstanding are used to divide the income. This is Basic EPS. For the income statement presentation of earnings per share any losses from discontinued operations should be deducted from the income from discontinued operations to arrive at the net income.

Given Information: Net income: $360,000.

Shares outstanding: 100,000.

Average market price: $15.

Warrants exercised: 15,000.

Par: $10.

(a) To determine: To determine the warrants are dilutive.

To determine

(b) To compute: To compute earnings per share.

To determine

(c) To compute: To compute diluted earnings per share.

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Answer 5

Chapter 16, Problem 28E

To determine

Earnings per share: Earnings per share (EPS) indicates the income earned per share of common stock. EPS is calculated as Basic EPS and Diluted EPS. The income for EPS is calculated by subtracting the preference dividends. The weighted-average common shares outstanding are used to divide the income. This is Basic EPS. For the income statement presentation of earnings per share any losses from discontinued operations should be deducted from the income from discontinued operations to arrive at the net income.

Given Information: Net income: $360,000.

Shares outstanding: 100,000.

Average market price: $15.

Warrants exercised: 15,000.

Par: $10.

(a) To determine: To determine the warrants are dilutive.

To determine

(b) To compute: To compute earnings per share.

To determine

(c) To compute: To compute diluted earnings per share.

Answer 6

Chapter 16, Problem 28E

To determine

Earnings per share: Earnings per share (EPS) indicates the income earned per share of common stock. EPS is calculated as Basic EPS and Diluted EPS. The income for EPS is calculated by subtracting the preference dividends. The weighted-average common shares outstanding are used to divide the income. This is Basic EPS. For the income statement presentation of earnings per share any losses from discontinued operations should be deducted from the income from discontinued operations to arrive at the net income.

Given Information: Net income: $360,000.

Shares outstanding: 100,000.

Average market price: $15.

Warrants exercised: 15,000.

Par: $10.

(a) To determine: To determine the warrants are dilutive.

Answer 7

Chapter 16, Problem 28E

To determine

Earnings per share: Earnings per share (EPS) indicates the income earned per share of common stock. EPS is calculated as Basic EPS and Diluted EPS. The income for EPS is calculated by subtracting the preference dividends. The weighted-average common shares outstanding are used to divide the income. This is Basic EPS. For the income statement presentation of earnings per share any losses from discontinued operations should be deducted from the income from discontinued operations to arrive at the net income.

Given Information: Net income: $360,000.

Shares outstanding: 100,000.

Average market price: $15.

Warrants exercised: 15,000.

Par: $10.

(a) To determine: To determine the warrants are dilutive.

Answer 8

To determine

(b) To compute: To compute earnings per share.

Answer 9

To determine

(b) To compute: To compute earnings per share.

Answer 10

To determine

(c) To compute: To compute diluted earnings per share.

Answer 11

To determine

(c) To compute: To compute diluted earnings per share.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 16 - Prob. 1Q Ch. 16 - 2. Briefly explain why corporations issue...Ch. 16 - 3. Discuss the similarities and the differences...Ch. 16 - 4. Bridgewater Corp. offered holders of its 1,000...Ch. 16 - 5. Explain how the conversion feature of...Ch. 16 - Prob. 6Q Ch. 16 - Prob. 7Q Ch. 16 - Prob. 8Q Ch. 16 - Prob. 9Q Ch. 16 - Prob. 10Q

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(b) To compute: To compute earnings per share.

(c) To compute: To compute diluted earnings per share.

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