Q60. What was the after-tax interest charge?

A)   $6,215.

B)   $2,450.

C)   $3,675.

Q61. How many new shares had to be issued to facilitate warrant conversion?

A)   2,689.

B)   13,665.

C)   9,986.

Q62. What were the basic and diluted EPS for the year?

          Basic EPS                                      Diluted EPS

A) $3.97                                          $3.06

B) $4.12                                          $3.06

C) $4.12                                          $2.95

Q63. Common size income statements express all income statement items as a percentage of:

A)   net income.

B)   sales.

C)   assets.

答案和详解如下：

Q60. What was the after-tax interest charge?

A)   $6,215.

B)   $2,450.

C)   $3,675.

Correct answer is C)

(0.06125)(1,000)(100)

(6,125)(1 − 0.4) = 3,675

Q61. How many new shares had to be issued to facilitate warrant conversion?

A)   2,689.

B)   13,665.

C)   9,986.

Correct answer is A)

9,986 × $38 = $379,468

$379,468 / $52 = 7,297 common shares

9,986 − 7,297 = 2,689 new common shares

Q62. What were the basic and diluted EPS for the year?

          Basic EPS                                      Diluted EPS

A) $3.97                                          $3.06

B) $4.12                                          $3.06

C) $4.12                                          $2.95

Correct answer is B)

Basic EPS = Net income − preferred dividends / Wt Average shares of common = ($200,000 − $35,045) / 40,045 = 164,955/40,405 = $4.12

Diluted EPS:

(100 bonds)(33 common shares/bond) = 3,300 common shares

(2,315 preferred shares)(3.3) = 7,640

(2,572 preferred shares)(5) = 12,860

7,640 + 12,860 = 20,500 common shares from preferred

[($200,000 − $35,045) + $35,045 + $3,675] / (40,045 + 3,300 + 20,500 + 2,689)

= $203,675 / 66,534 shares = $3.06

Q63. Common size income statements express all income statement items as a percentage of:

A)   net income.

B)   sales.

C)   assets.

Correct answer is B)

Common size income statements express all income statement items as a percentage of sales. Note that common size balance sheets express all balance sheet accounts as a percentage of total assets.

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