ch16 - On September 1, reissued 6,000 shares of treasury...

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Name: __________________________ Problem chapter 16 1. Basic and diluted EPS. The following information was taken from the books and records of Teller, Inc.: Net Income $800,000 Capital Structure: Convertible bonds 6% $45,000 worth. Each $500 bond can be converted into 25 shares of common stock. The common stock $10 par started the year with 65,000 shares outstanding (issued 5 years ago). On April 1 there was a repurchase of 4,000 shares.
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Unformatted text preview: On September 1, reissued 6,000 shares of treasury stock. On November there was a 3 for 1 split. At the end of the year there were stock warrants outstanding (for the whole year) to purchase 30,000 shares of stock for $35 per share. The average market price for the stock is $55. The corporate income tax rate averages 40%. Instructions: Compute basic and diluted earnings per share....
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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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