Q25. As of the beginning of the year HalfPass Productions, Inc., had the following complex capital structure: § 3,000,000 common shares outstanding. § 175,000 options with an exercise price of $22. § 250,000 warrants with an exercise price of $18. During the year: § On March 1, the company issued 100,000 new shares of common stock. § On July 1, the board of directors declared a 15% stock dividend. § On September 1, the company repurchased 125,000 shares. § Net income (after-tax) for the year was $7,500,000. § The company paid common dividends of $2,750,000 and preferred dividends of $1,300,000. § The average market price for the common stock was $25 per share. Assume the fiscal year is January 1 through December 31. At year end, HalfPass’s basic EPS is closest to:
A) $1.66. B) $1.77. C) $1.94.
Q26. Washington, Inc.’s stock transactions during the year 2004 were as follows: January 1 720,000 shares issued and outstanding May 1 2 for 1 stock split occurred What was Washington’s weighted average number of shares outstanding during 2004, for earnings per share (EPS) computation purposes? A) 1,500,000. B) 1,440,000. C) 1,666,667.
Q27. A firm has a weighted average number of 20,000 common shares selling at an average of $10 throughout the year and 11,000, 10%, $100 par value preferred shares. If the firm earns $210,000 after taxes, what is its Basic EPS? A) $7.50 / share. B) $10.50 / share. C) $5.00 / share.
Q28. Zichron, Inc., had the following equity accounts on December 31: § Common stock: 20,000 shares. § Preferred stock A: 10,000 shares convertible into common on a 2 for 1 basis, dividend of $40,000 was declared during the year. § Preferred stock B: 10,000 shares, convertible to common on a 4 for 1 basis, dividend of $5,000 was declared during the year. § The company reported net income of $120,000 and paid a $20,000 dividend to its common shareholders. What are the basic earnings per share reported for the year? A) $2.75. B) $3.75. C) $2.00.
Q29. What are the diluted earnings per share reported for the year? A) $1.50. B) $3.00. C) $1.33.
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发表于 2009-1-17 09:32
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