Quiz chap16 - for 1,000 shares of common stock that can be...

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Quiz Chapter 16 Accounting 3312 Spring 2010 Name: __________________________ 1. Earnings per share. Elias Corporation has 500,000 shares of common stock outstanding throughout 2010. In addition, the corporation has $300,000, 5-year, 10% bonds issued at par in 2008.Each $500 bond is convertible into 20shares of common stock after 10/25/09. During the year 2010, the corporation earned $800,000 after deducting all expenses. There are warrants
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Unformatted text preview: for 1,000 shares of common stock that can be purchased for $20 each share. The average market price for the common stock was $25. The tax rate was 30%. Instructions Compute the proper earnings per share for 2010 300000/500=600 600*20=12000 NI=800000 1000*20=20000 20000/25=800 shares 1000-800=200 shares Basic 800000/500000=1.6 300000*0.1*(1-0.3)/12000= 1.75 1.6<1.75 (Antidilutive) EPS: 800000/(500000+200)=1.59936 Page 1...
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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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