Q14. Based on the following data, how many shares of common stock should be used to calculate diluted earnings per share?

§           Net income of $1,500,000, tax retention rate of 60%

§           1,000,000 shares of common are outstanding at the beginning of the year.

§           10,000, 6% convertible bonds with each bond convertible into 20 shares of common stock were issued at par ($100) on June 30^th of this year.

§           The firm has 100,000 warrants outstanding all year with an exercise price of $25 per share.

§           The average stock price for the period is $20, and the ending stock price is $30.

A)   1,266,667

B)   1,000,000.

C)   1,100,000.

Q15. Selected information from Doors, Inc.’s financial activities in the year 2005 included the following:

§           Net income was $372,000.

§           100,000 shares of common stock were outstanding on January 1.

§           The average market price per share was $18 in 2005.

§           Dividends were paid in 2005.

§           2,000, 6 percent $1,000 par value convertible bonds, which are convertible at a ratio of 25 shares for each bond, were outstanding the entire year.

§           Doors, Inc.’s tax rate is 40%.

Doors, Inc.’s diluted earnings per share (Diluted EPS) for 2005 was closest to:

A)   $3.72.

B)   $3.28.

C)   $2.96.

Q16. Selected information from Gerrard, Inc.’s financial activities in the most recent year was as follows:

§           Net income was $330,000.

§           The tax rate was 40%.

§           700,000 shares of common stock were outstanding on January 1.

§           The average market price per share for the year was $6.

§           Dividends were paid during the year.

§           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 outstanding for the entire year.

§           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)   $0.197.

C)   $0.289.

thanks

[此贴子已经被作者于2009-4-6 11:01:49编辑过]

a