Q27. How will dilutive securities affect earnings per share (EPS) when determining diluted earnings per share? A) Decrease EPS. B) Increase EPS. C) Either decrease or increase EPS depending upon if the security is dilutive or antidilutive.
Q28. In calculating the numerator for diluted Earnings Per Share, the interest on convertible debt is:
A) added to earnings available to common shareholders after an adjustment for taxes. B) subtracted from earnings available to common shareholders after an adjustment for taxes. C) added to earnings available to common shareholders.
Q29. An analyst has gathered the following information about Artcraft, Inc. for the year: § Net income of $30,000. § 5,000 shares of common stock and 500 shares of 8%, $90 par convertible preferred stock outstanding during the whole year. § Each share of convertible preferred can be converted into 4 shares of common stock. § Last year, Artcraft issued at par, $60,000 total face value of 6.0% convertible bonds, with each of the 60 bonds convertible into 110 shares of the Artcraft common stock. If Artcraft's effective tax rate is 40%, what will Artcraft report as diluted earnings per share (EPS)? A) $3.12. B) $2.36. C) $3.37.
Q30. In calculating the numerator for diluted earnings per share, the dividends on convertible preferred stock are: A) added to earnings available to common shareholders with an adjustment for taxes. B) added to earnings available to common shareholders without an adjustment for taxes. C) subtracted from earnings available to common shareholders without an adjustment for taxes.
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发表于 2009-1-17 09:49
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