答案和详解如下： 46．All of the following are considered a potentially dilutive securities EXCEPT: A) warrants. B) preferred stock. C) stock options. D) convertible debt. The correct answer was B) Not all preferred stock is dilutive. Only convertible preferred stock is potentially dilutive. 47．Which of the following statements regarding basic and diluted EPS is FALSE? A) A simple capital structure contains no potentially dilutive securities. B) Dilutive securities decrease EPS if they are exercised or converted to common stock. C) Antidilutive securities decrease EPS if they are exercised or converted. D) When using the treasury stock method, always use average price rather than ending share price. The correct answer was C) Antidilutive securities increase EPS if exercised or converted to common stock. 48．Which of the following statements regarding basic and diluted earnings per share (EPS) is TRUE? A) The basic EPS calculation considers the effects of dilutive securities. B) Neither basic nor diluted EPS considers antidilutive securities in its computation. C) To calculate diluted EPS, use net income less preferred dividends in the numerator. D) If diluted EPS is less than basic EPS then the convertible securities are said to be antidilutive. The correct answer was B) Basic EPS does NOT consider the effects of dilutive securities. To calculate diluted EPS, dividends on convertible preferred stock and the after tax interest on convertible debt need to be added to net income in the numerator. If diluted EPS are more than basic EPS, the convertible securities are antidilutive and should NOT be used in computing diluted EPS. 49．Protocol, Inc.’s net income for 2005 was $4,800,000. Protocol had 800,000 shares of common stock outstanding for the entire year. The tax rate was 40 percent. The average share price in 2005 was $37.00. Protocol had 5,000 8 percent $1,000 par value convertible bonds that were issued in 2004. Each bond is convertible into 25 shares of common stock. Protocol, Inc.’s basic and diluted earnings per share for 2005 were closest to:
A) $6.00 $4.92 B) $6.00 $5.45 C) $5.19 $4.92 D) $5.45 $5.19 The correct answer was Protocol’s basic EPS (net income / weighted average common shares outstanding) was ($4,800,000 / 800,000 =) $6.00. Diluted EPS is calculated under the assumption that the convertible bonds were converted into common stock as of January 1, 2005, and the bond interest net of tax was restored to net income. The common shares from the conversion of the bonds are added to the denominator of the equation. Protocol’s Diluted EPS was ($4,800,000 + ((5,000 * $1,000 * .08)(1 - .40)) / (800,000 + (5000 * 25)) =) $5.45. 50．Selected information from Gerrard, Inc.’s financial activities in the year 2004 was as follows: § Net income was $330,000. § The tax rate was 40 percent. § 700,000 shares of common stock were outstanding on January 1. § The average market price per share was $6 in 2006. § Dividends were paid in 2006. § 2,000 shares of 8% $500 par value preferred shares, convertible into common shares at a rate of 200 common shares for each preferred share, were issued in 2005. § 200,000 shares of common stock were issued on March 1. Gerrard, Inc.’s diluted earnings per share (diluted EPS) was closest to: A) $0.261. B) $0.289. C) $0.197. D) $0.254. The correct answer was A) To compute Gerrard’s basic earnings per share (EPS) ((net income – preferred dividends) / weighted average common shares outstanding), the weighted average common shares outstanding must be computed. 700,000 shares were outstanding from January 1, and 200,000 shares were issued on March 1, so the weighted average is (700,000 + (200,000 * 10 / 12) =) 866,667. Basic EPS was ($330,000 – (2,000 * $500 * 0.08)) / 866,667 =) $0.289. If the convertible preferred shares were converted to common stock as of January 1 (2,000 * 200 =) 400,000 additional common shares would have been issued and dividends on the preferred stock would not have been paid. Diluted EPS was ($330,000 / (866,667 + 400,000) =) $0.261. | 
发表于 2008-4-10 12:11
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