Homework Quiz—10 S11 Section 3

Homework Quiz—10 S11 Section 3 - nearest...

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S11 Section 3 Homework Quiz— 10 Name Section ABC Company had 823,200 issued and outstanding shares of $11 par common stock at 1/1/10. ABC also had 83,000 shares of $100 par, 4% preferred stock issued and outstanding at 1/1/10. During 2010 ABC did the following: a. Split the common stock 5 for 1 on March 1. b. Purchased 61,200 shares of treasury stock on June 1. c. Borrowed $1,500,000 using 6% Bonds on July 1. The bonds pay 3% interest semiannually on 5/1 and 11/1. d. Issued 97,200 shares of $11 par common stock on August 1. e. Sold 58,800 treasury shares on November 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 2/28 823,200 5 2/12 686,000 3/1 to 5/31 4,116,000 3/12 1,029,000 6/1 to 7/31 4,054,800 2/12 675,800 8/1 to 10/31 4,152,000 3/12 1,038,000 11/1 to 12/31 4,210,800 2/12 701,800 Weighted Average 4,130,600 Required: If Net Income was $8,410,000, calculate 2010 Basic Earnings Per Share (rounded to the
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Unformatted text preview: nearest cent). Preferred dividends = (4% x $100 x 83,000) = 332,000 Basic EPS = ($8,410,000 - $332,000)/4,130,600 = $1.96 per share 1 S11 Section 3 Homework Quiz 10 Name Section ABC Company had 823,200 issued and outstanding shares of $11 par common stock at 1/1/10. ABC also had 83,000 shares of $100 par, 4% preferred stock issued and outstanding at 1/1/10. During 2010 ABC did the following: a. Split the common stock 5 for 1 on March 1. b. Purchased 61,200 shares of treasury stock on June 1. c. Borrowed $1,500,000 using 6% Bonds on July 1. The bonds pay 3% interest semiannually on 5/1 and 11/1. d. Issued 97,200 shares of $11 par common stock on August 1. e. Sold 58,800 treasury shares on November 1. Required : In the table below, calculate 2010 Weighted Average Shares Outstanding. Required: If Net Income was $8,410,000, 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-West Lafayette.

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Homework Quiz—10 S11 Section 3 - nearest...

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