Practice final BBUS3211_SW2_PE_10JUL12

Theaverage marketpriceofthecommonsharesin2012was30

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Unformatted text preview: re the entry for the interest payment on January 1, 2013. TRU Open Learning BBUS 3211 • PRACTICE EXAMINATION 7 of 13 Question 2 (12 marks) Basic and diluted earnings per share. The following data relate to Cornwall Ltd. for the calendar year 2012: Net income (30% tax rate) $3,500,000 Average number of common shares outstanding during 2012 1,000,000 shares 10%, cumulative convertible preferred shares: convertible into 80,000 common shares $1,600,000 8% convertible bonds; convertible into 75,000 common shares $2,500,000 Stock options, exercisable at $25 per share 90,000 shares All the convertible securities and stock options were outstanding all year. The average market price of the common shares in 2012 was $30. Required: a. Calculate basic earnings per share. b. Calculate diluted earnings per share. TRU Open Learning BBUS 3211 • PRACTICE EXAMINATION 8 of 13 Question 3 (10 marks) Courvoisier Corp. obtained the following information from the insurance company that administers their employee defin...
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This note was uploaded on 02/05/2014 for the course BUS 370 taught by Professor Andreathomas during the Spring '13 term at Capital University.

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