31．Selected information from Baltimore Corp’s financial activities in the year 2004 is as follows: § Net income was $4,200,000 . § 750,000 shares of common stock were outstanding on January 1. § The average market price per share was $50 in 2004. § Dividends were paid in 2004. 10,000 warrants, which allowed the holder to purchase 10 shares of common stock for each warrant held at a price of $40 per common share, were outstanding the entire year. Baltimore’s diluted earnings per share (Diluted EPS) for 2004 is closest to: A) $5.60. B) $4.94. C) $5.45. D) $4.83.
32．An analyst has gathered the following information about Barnstabur, Inc., for the year: § Reported net income of $30,000. § 5,000 shares of common stock and 2,000 shares of 8 percent, $90 par preferred stock outstanding during the whole year. § During the year, Barnstabur issued at par, $60,000 of par, 6.0 percent convertible bonds, with each of the 60 bonds convertible into 110 shares of the Barnstabur common stock. If Barnstabur’s effective tax rate is 40 percent what will Barnstabur report for diluted earnings per share (EPS)? A) $1.53. B) $2.36. C) $1.66. D) $1.25.
33．An analyst has gathered the following information about Artcraft, Inc. for the year: § Net income of $30,000. § 5,000 shares of common stock and 500 shares of 8 percent, $90 par convertible preferred stock outstanding during the whole year. § Each share of convertible preferred can be converted into 4 shares of common stock. § Last year, Artcraft issued at par, $60,000 total face value of 6.0 percent convertible bonds, with each of the 60 bonds convertible into 110 shares of the Artcraft common stock. If Artcraft's effective tax rate is 40 percent, what will Artcraft report as diluted earnings per share (EPS)? A) $3.12. B) $3.37. C) $2.36. D) $3.42.
34．How will dilutive securities affect earnings per share (EPS) when determining diluted earnings per share? A) Raise EPS. B) Neither raise nor lower EPS. C) Either lower or raise EPS depending upon if the security is dilutive or antidilutive. D) Lower EPS.
35．The Allen Corporation had 100,000 shares of common stock outstanding at the beginning of the year. Allen issued 30,000 shares of common May 1. On July 1, the company issued a 10 percent stock dividend. On September 1, Allen issued 1,000, 10 percent bonds convertible into 21 shares of stock each. What is the weighted average number of shares to be used in computing basic and diluted earnings per share (EPS), assuming the convertible bonds are dilutive?
| Basic Shares | Diluted Shares |
A) 130,000
132,000 B) 132,000
146,000 C) 139,000
146,000 D) 132,000
139,000 | 
发表于 2008-4-10 12:01
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