answers to acct3312 test1_2 - 1.18627313 Diluted

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Problem 1 Cash Interest Amortizat $24,161,240 Yr1 $1,875,000 $1,932,899 $57,899 $24,219,139 Yr2 $1,875,000 $1,937,531 $62,531 $24,281,670 Yr3 $1,875,000 $1,942,534 $67,534 $24,349,204 10 points Cash $24,161,240 5 points Discount on Bond $838,760 Bond Payable $25,000,000 Interest Expense $1,937,531 5 points Discount on Bond $62,531 Cash $1,875,000 25000000 1.02 $25,500,000 $24,349,204 Loss $1,150,796 10 points Problem 2 Treasury Stock 24000 5 points Cash 24000 Cash 2520 5 points Treasury Stock 2400 Contributed Capital - TS 120 Cash 2240 10 points Contributed Capital - TS 120 Retained Earnings 40 Treasury Stock 2400 Common Stock 16000 10 points Paid in Capital Excess 2560 8 Retained Earnings 640 Treasury Stock 19200 Problem 3 Net Income 280000 Wt. Avg 200000 0.42 1.1 91666.66667 220000 0.5 1.1 121000 242000 0.083333333 1 20166.66667 5 points 232833.3333 Basic =280000/232833.333 1.20257695 5 points Warrants 16000 20 320000 12800 3200 5 points Bonds =(.05*300000*.7)/(300*50) =(Interest Expense * (1-tax rate))/# of shares CS if converted 0.7 5 points Preliminary =280000/(232833.333+3200)
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Unformatted text preview: 1.18627313 Diluted =(280000+(.05*300000*.7))/(232833.333+3200+(300*50)) =(Net Income - PS dividend Claims)/(Weighted Average # of shares CS) 1.15721684 2 points per number above (10 points) Homework Chapter 16 Basic EPS = (Net Income - PS dividend Claims)/ Weighted Average # of shares CS NI 800,000 192,000 Basic EPS 4.1666667 Prefer. Div 65,000 0.25 3 48750 61,000 0.416666667 3 76250 67,000 0.166666667 3 33500 201000 0.166666667 1 33500 192000 Options 30,000 35 1050000 55 19090.9091 How much can you buy? 10,909 = (Net Income = PS dividend Claims)/ Weighted Average # of shares CS 800,000 192,000 10,909 3.9426541 Bonds =(Interest Expense * (1-tax rate))/# of shares CS if converted 2700 0.6 2250 1620 2250 0.72 = (Net Income - PS dividend Claims)/ Weighted Average # of shares CS 1,620 800,000 192,000 10,909 2250 801,620 205,159 3.9073109...
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This note was uploaded on 03/27/2012 for the course ACCT 3312 taught by Professor Staff during the Spring '08 term at Texas A&M University, Corpus Christi.

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