6．When considering convertible preferred stock which of the following components of the earnings per share (EPS) equation needs to be adjusted to calculate diluted earnings per share? A) The numerator. B) The denominator. C) No adjustment is necessary because there is an equal and offsetting effect on both components. D) The numerator and denominator.
7．When considering the impact of warrants on earnings per share, the method to calculate the number of shares added to the denominator is derived using which method? A) Cost recovery method. B) Completed contract method. C) Weighted average method. D) Treasury Stock method.
8．The following data pertains to the Sapphire Company: § Net income equals $15,000 § 5,000 shares of common stock issued on January 1st § 10 percent stock dividend issued on June 1st § 1000 shares of common stock were repurchased on July 1st § 1000 shares of 10 percent, $100 par preferred stock each convertible into 8 shares of common were outstanding the whole year What is the company’s diluted earnings per share (EPS)? A) $2.50. B) $1.15. C) $1.20. D) $1.00.
9．Assume that the exercise price of an option is $11, and the average market price of the stock is $16. Assuming 1,039 options are outstanding during the entire year, what is the number of shares to be added to the denominator of the Diluted EPS? A) 289. B) 1,039. C) 325. D) 714.
10．Assume that the exercise price of an option is $10, and the average market price of the stock is $13. Assuming 999 options are outstanding during the entire year, what is the number of shares to be added to the denominator of the Diluted EPS? A) 999. B) 768. C) 231. D) 206. | 
发表于 2008-4-10 11:51
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