ch19_21_6e_spe

ch19_21_6e_spe - Practice Exam Chapters 19-21 Solutions...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Practice Exam, Chapters 19-21 Solutions Requirement 1 $5 fair value per option x 20 million options granted = $100 million fair value of award Requirement 2 no entry Requirement 3 ($ in millions) Compensation expense ($100 million ÷ 4 years) 25 Paid-in capital - stock options. .................... 25 ($ in millions, except per share amount) Solution: net preferred income dividends $465 – $15 $450 —————————————————————————————————————— = —— = $1.87 200 (1.10) + 24 ( 10 / 12 ) (1.10) – 6 ( 2 / 12 ) 241 shares new retired at Jan. 1 shares shares Problem I Problem II
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
____stock dividend___$ adjustment Diluted EPS net preferred after-tax income dividends Interest savings $465 – $15 + $60 - 40% ($60) $486 —————————————————————————————————————— = —— = $1.82 200 (1.10) + 24 ( 10 / 12 ) (1.10) – 6 ( 2 / 12 ) + (12 – 10 * ) + 24 267
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 06/16/2011 for the course ACC 302 taught by Professor Spurrier during the Spring '09 term at Old Dominion.

Page1 / 4

ch19_21_6e_spe - Practice Exam Chapters 19-21 Solutions...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online