Q30. An analyst gathered the following information about a company: § 01/01/04 - 50,000 shares issued and outstanding at the beginning of the year § 04/01/04 - 5% stock dividend § 10/01/04 - 10% stock dividend What is the company’s weighted average number of shares outstanding at the end of 2004? A) 57,500. B) 55,000. C) 57,750.
Q31. Last year, the AKB Company had net income equal to $5 million. Combined state and local taxes were 45%. The firm paid $1 million to holders of its 1 million common shares and $250,000 to 100,000 preferred shareholders. What was AKB's earnings per share (EPS) last year? A) $2.25. B) $2.50. C) $4.75.
Q32. At the beginning of 2004, the Alaska Corporation had 2 million shares of common stock outstanding and no preferred stock. At the end of August, 2004, Alaska issued 600,000 new shares of common stock. If Alaska reported net income equal to $8.8 million, what was the firm’s earnings per share for 2004? A) $3.67. B) $3.38. C) $4.00.
Q33. An analyst gathered the following information about a company: § 01/01/06 - 20,000 shares issued and outstanding § 04/01/06 - 5.0% stock dividend § 07/01/06 - 5,000 shares repurchased § 10/01/06 - 2:1 stock split What is the company’s weighted average number of shares outstanding at the end of 2006? A) 47,000. B) 39,500. C) 37,000.
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