&quot;Homework Quiz&Atilde;&cent;&acirc;‚&not;&acirc;€11 02-25

# "Homework QuizÃ¢â‚¬â€11 02-25

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Homework Quiz—11 Name Section ABC Company had 552,000 issued and outstanding shares of \$10 par common stock at 1/1/10. ABC also had 10,000 shares of \$100 par, 6% convertible preferred stock issued and outstanding at 1/1/10. Each \$100 par preferred share is convertible into 4 shares of common. During 2010 ABC did the following: a. Issued 36,000 shares of \$10 par common stock on March 1. b. Purchased 10,800 common shares of treasury stock on April 1. c. Borrowed \$600,000 using 6% convertible bonds on June 1. Bonds pay 3% interest semiannually on 6/1 and 12/1. Each \$1,000 bond is convertible into 50 shares of \$10 par common. d. Sold 4,800 treasury shares on August 1 Required : In the table below, calculate 2010 Weighted Average Shares Outstanding. Dates Outstanding Shares Outstanding Restatement Fraction of the Year Weighted Shares Outstanding 1/1 to 2/28 552,000 2/12 92,000 3/1 to 3/31 588,000 1/12 49,000 4/1 to 7/31 577,200 4/12 192,400 8/1 to 12/31 582,000 5/12 242,500

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## This note was uploaded on 04/09/2011 for the course MGMT 351 taught by Professor Staff during the Winter '08 term at Purdue.

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"Homework QuizÃ¢â‚¬â€11 02-25

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