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 30th 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.
| 
发表于 2009-1-17 09:44
| 
