{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Su06Ch16_Solutions

# Su06Ch16_Solutions - CHAPTER 16 Dilutive Securities and...

This preview shows pages 1–7. Sign up to view the full content.

16-1 CHAPTER 16 Dilutive Securities and Earnings Per Share ASSIGNMENT CLASSIFICATION TABLE Topics Questions Brief Exercises Exercises Problems Cases 1. Convertible debt and preferred stock. 1, 2, 3, 4, 5, 6, 7 1, 2, 3 1, 2, 3, 4, 5, 6, 7, 8, 24, 25 2 1 2. Warrants and debt. 2, 3, 8, 9 4, 5 2, 7, 8, 9, 28 1 1, 3 3. Stock options. 1, 10, 11, 12, 13, 14 6, 7 10, 11, 12, 13, 14 1, 3, 4 2, 4, 5 4. Earnings Per Share (EPS) —terminology. 17, 22, 23, 25 14 7 5. EPS—Determining potentially dilutive securities. 17, 18, 19, 20 11, 12, 13 22, 23, 27 4 6, 8 6. EPS—Treasury stock method. 21 26 5 6, 8 7. EPS—Weighted average computation. 15, 16 9, 10 15, 16, 17, 18, 21 4, 5, 6, 7, 8, 9 8. EPS—General objectives. 24 8, 14 6, 7, 8 9. EPS—Comprehensive calculations. 19, 20, 21, 22, 23, 24, 25, 26, 28 6, 7, 8 10. EPS—Contingent shares. 27 *11. Stock appreciation rights. 15 13, 14 4 *This material is dealt with in an Appendix to the chapter.

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

View Full Document
16-2
16-3 SOLUTIONS TO EXERCISES EXERCISE 16-1 (15-20 minutes) 1. Cash (\$20,000,000 X .99) ............................... 19,800,000 Discount on Bonds Payable ......................... 200,000 Bonds Payable ........................................ 20,000,000 Unamortized Bond Issue Costs .................... 70,000 Cash ......................................................... 70,000 2. Cash ................................................................ 19,600,000 Discount on Bonds Payable ......................... 1,200,000 Bonds Payable ........................................ 20,000,000 Paid-in Capital—Stock Warrants ........... 800,000 Value of bonds plus warrants (\$20,000,000 X .98) \$19,600,000 Value of warrants (200,000 X \$4) 800,000 Value of bonds \$18,800,000 3. Debt Conversion Expense ............................ 75,000 Bonds Payable ............................................... 10,000,000 Discount on Bonds Payable .................. 55,000 Common Stock ....................................... 1,000,000 Paid-in Capital in Excess of Par ............ 8,945,000* Cash ......................................................... 75,000 *[(\$10,000,000 – \$55,000) – \$1,000,000]

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

View Full Document