Q16. The following information pertains the QRK Company: § One million shares of common stock outstanding at the beginning of 2005. § 200,000 shares issued on the last day of March. § 500,000 shares issued on the last day of June. § 800,000 shares issued on the last day of September. What is the number of shares that should be used to compute 2005 earnings per share for the QRK Company? A) 2.5 million. B) 1.6 million. C) 1.5 million.
Q17. The ZZT Company went public on June 1, 2004, by issuing 25 million shares of common stock. In 2005, the firm raised additional capital by issuing 2 million shares of preferred stock. What is the weighted average number of common shares outstanding for the year ending December 31, 2005? A) 14,583,333. B) 10,416,667. C) 25,000,000.
Q18. Ajax Company has a simple capital structure. Which of the following will NOT be found on its balance sheet? A) 6%, $50 par value callable bond. B) 3%, $100 par value convertible bond. C) 10%, secured mortgage bond denominated in Swiss francs.
Q19. An analyst has gathered the following information about a company: § 110,000 shares of common outstanding at the beginning of the year. § The company repurchases 20,000 of its own common shares on July 1. § Net income is $300,000 for the year. § 10,000 shares of existing 10 percent cumulative $100 par preferred outstanding that is not in arrears at the beginning or ending of the year. § The company also has $1 million in 10 percent callable bonds outstanding. § The company has declared a $0.50 dividend on the common. What is the company's basic Earnings Per Share? A) $3.00. B) $2.00. C) $1.00.
Q20. The following information pertains to Bender, Inc., for last year: § Net income of $25 million. § 1 million shares of $10 par value preferred stock outstanding paying a 10% dividend. § 50 million shares of common stock outstanding at the beginning of the year. § Issued an additional 5 million shares of common stock on 7/1. What is Bender, Inc.’s basic earnings per share (EPS)? A) $0.457. B) $0.476. C) $0.384.
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发表于 2009-1-17 09:29
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