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Student Notes, Stock based compensation(19)

Calculation of net income calculation of net income

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Calculation of Net Income Calculation of Net Income
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Chapter 19-22 Earnings Per Share Earnings Per Share Earnings Per Share Earnings Per Share (a) Compute diluted earnings per share for 2007. When calculating  Diluted  EPS, begin with  Basis  EPS. Basic EPS
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Chapter 19-23 Earnings Per Share Earnings Per Share Earnings Per Share Earnings Per Share (a) Compute diluted earnings per share for 2007. When calculating  Diluted  EPS, begin with  Basis  EPS. Diluted EPS
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Chapter 19-24 Earnings Per Share Earnings Per Share Earnings Per Share Earnings Per Share (b) Compute diluted earnings per share for 2007 if the bonds were  issued sept 1, 2007. Diluted EPS
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Chapter 19-25 Diluted EPS – Options and Warrants Measure the dilutive effects of potential conversion using the  treasury-stock method , which assumes that: (1) company exercises the options or warrants at the beginning of  the year (or date of issue if later), and  (2) that it uses those proceeds to purchase common stock for the  treasury. Earnings Per Share Earnings Per Share Earnings Per Share Earnings Per Share
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Chapter 19-26 Earnings Per Share Earnings Per Share Earnings Per Share Earnings Per Share (EPS with Options) Venzuela Company’s net income for 2007 is $50,000.  The only potentially dilutive securities outstanding were 1,000 options issued  during 2006, each exercisable for one share at $6. None has been exercised, and  10,000 shares of common were outstanding during 2007. The average market price  of the stock during 2007 was $20. Instructions (a) Compute diluted earnings per share.  (b) Assume the 1,000 options were issued on October 1, 2007 (rather than in  2006). The average market price during the last 3 months of 2007 was $20.
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Chapter 19-27 Earnings Per Share Earnings Per Share Earnings Per Share Earnings Per Share (a) Compute diluted earnings per share for 2007. Treasury-Stock Method Treasury-Stock Method ÷ ÷
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Chapter 19-28 Earnings Per Share Earnings Per Share Earnings Per Share Earnings Per Share (a) Compute diluted earnings per share for 2007. When calculating  Diluted  EPS, begin with  Basis  EPS. Diluted EPS
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Chapter 19-29 Earnings Per Share Earnings Per Share Earnings Per Share Earnings Per Share Treasury-Stock Method Treasury-Stock Method (b) Compute diluted earnings per share assuming the 1,000 options were  issued on October 1, 2007.
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Chapter 19-30 Earnings Per Share Earnings Per Share Earnings Per Share Earnings Per Share (b) Compute diluted earnings per share assuming the 1,000 options were  issued on October 1, 2007. Diluted EPS
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Chapter 19-31 Contingent Issue Agreement Contingent shares are issued as a result of the:  1.
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