Q1. Sampson Corp. had 500,000 shares of common stock outstanding at the beginning of the year. The average market price was $20. § On April 1, Sampson issued 100,000 shares of $1000 par value 10 percent preferred stock. § On July 1, Sampson issued 200,000 warrants to purchase 10 shares of common stock each at $22 per share. § On October 1, Sampson repurchased 60,000 of common stock as treasury stock for $15 per share. The weighted average common shares outstanding Sampson should use to compute basic earnings per share (EPS) was: A) 515,000. B) 600,000. C) 485,000.
Q2. Which of the following securities would least likely be found in a simple capital structure? A) 3%, $100 par value convertible preferred. B) 6%, $5000 par value putable bond. C) 7%, $100 par value non convertible preferred.
Q3. A complex capital structure, for purposes of determining disclosure of diluted Earnings Per Share, is distinguished from a simple capital structure by the:
A) company having issued warrants, convertible securities, or options. B) company's use of debt to finance its operations. C) company having preferred stock outstanding.
Q4. Juniper Corp’s stock transactions during the year 2004 were as follows: § January 1 540,000 shares issued and outstanding § March 1 50 percent stock dividend § July 1 180,000 treasury shares reacquired § October 1 60,000 treasury shares reissued When computing for earnings per share (EPS) computation purposes, what was Juniper’s weighted average number of shares outstanding during 2004? A) 735,000. B) 930,000. C) 870,000.
Q5. Which type of a capital structure contains no dilutive securities? A) Simple. B) Basic. C) Complex.
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发表于 2009-1-17 09:22
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