Homework Quiz&acirc;€”10 S11 Section 2

# Homework Quizâ€”10 S11 Section 2 - nearest cent)....

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S11 Section 2 Homework Quiz— 10 Name Section ABC Company had 1,039,200 issued and outstanding shares of \$8 par common stock at 1/1/10. ABC also had 53,000 shares of \$100 par, 5% preferred stock issued and outstanding at 1/1/10. During 2010 ABC did the following: a. Issued 97,200 shares of \$8 par common stock on March 1. b. Split the common stock 2 for 1 on May 1. c. Purchased 61,200 shares of treasury stock on June 1. d. Sold 58,800 treasury shares on October 1. e. Borrowed \$1,500,000 using 6% Bonds on November 1. The bonds pay 3% interest semiannually on 5/1 and 11/1. 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 1,039,200 2 2/12 346,400 3/1 to 4/30 1,136,400 2 2/12 378,800 5/1 to 5/31 2,272,800 1/12 189,400 6/1 to 9/30 2,211,600 4/12 737,200 10/1 to 12/31 2,270,400 3/12 567,600 Weighted Average 2,219,400 Required: If Net Income was \$6,140,000, calculate 2010 Basic Earnings Per Share (rounded to the

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Unformatted text preview: nearest cent). Preferred dividends = (5% x \$100 x 53,000) = 265,000 Basic EPS = (\$6,140,000 - \$265,000)/2,219,400 = \$2.65 per share 1 S11 Section 2 Homework Quiz— 10 Name Section ABC Company had 1,039,200 issued and outstanding shares of \$8 par common stock at 1/1/10. ABC also had 53,000 shares of \$100 par, 5% preferred stock issued and outstanding at 1/1/10. During 2010 ABC did the following: a. Issued 97,200 shares of \$8 par common stock on March 1. b. Split the common stock 2 for 1 on May 1. c. Purchased 61,200 shares of treasury stock on June 1. d. Sold 58,800 treasury shares on October 1. e. Borrowed \$1,500,000 using 6% Bonds on November 1. The bonds pay 3% interest semiannually on 5/1 and 11/1. Required : In the table below, calculate 2010 Weighted Average Shares Outstanding. Required: If Net Income was \$6,140,000, calculate 2010 Basic Earnings Per Share (rounded to the nearest cent). 2...
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## This note was uploaded on 03/03/2012 for the course MGMT 351 taught by Professor Staff during the Spring '08 term at Purdue University.

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Homework Quizâ€”10 S11 Section 2 - nearest cent)....

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