Student Notes, Stock based compensation(19)

What would be the eps assume net income of 100 on

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What would be the EPS (assume net income of $100) on December  31?  Would it be reasonable to assume the EPS is $1/share (this is  not a redundant question)?  Think about what information EPS  provides.  
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Chapter 19-16 Earnings Per Share Earnings Per Share Earnings Per Share Earnings Per Share On January 1, 2027, Swanson Corp. had 480,000 shares of common stock  outstanding. During 2008, it had the following transactions that affected the  common stock account. Fe b r uar y 1 I ssue d  12 0 ,0 0 0  S har e s Mar c h 1 I ssue d  a 10 %  stoc k d ivid e nd May 1 Ac quir e d  10 0 ,0 0 0  shar e s of  tr e asur y stoc k J une  1 I ssue d  a 3 -f or -1 stoc k split O c tob e r  1 Re issue d  6 0 ,0 0 0  shar e s of  tr e asur y stoc k
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Chapter 19-17 Earnings Per Share-Simple Capital Structure Earnings Per Share-Simple Capital Structure Earnings Per Share-Simple Capital Structure Earnings Per Share-Simple Capital Structure Weighted-Average Number of Shares
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Chapter 19-18 Earnings Per Share Earnings Per Share Earnings Per Share Earnings Per Share So far we have been considering a simple capital structure, but  what if it’s complex.  First, what would constitute a complex  capital structure?  Second, what is the problem with one in regards  to EPS? 
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Chapter 19-19 Use the “if- converted” method to measure the effects of  dilutive securities.  Basically, assume that the securities  have been converted.  I.E.,  1)   the conversion at the beginning of the       period (or  at the time of issuance of  the security, if issued during  the  period), and  2)  the elimination of related interest, net  of tax. Earnings Per Share Earnings Per Share Earnings Per Share Earnings Per Share
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Chapter 19-20 Earnings Per Share Earnings Per Share Earnings Per Share Earnings Per Share (Convertible Bonds)  In 2006 Chirac Enterprises issued, at par, 60, $1,000,  8% bonds, each convertible into 100 shares of common stock.  Chirac had revenues  of $17,500 and expenses other than interest and taxes of $8,400 for 2007. (Assume  that the tax rate is 40%.)  Throughout 2007, 2,000 shares of common stock were  outstanding; none of the bonds were converted or redeemed. Instructions (a)  Compute diluted earnings per share for 2007. (b)  Assume same facts as those for Part (a), except the 60 bonds were issued on  September 1, 2007 (rather than in 2006), and none have been converted or  redeemed.
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Chapter 19-21 Earnings Per Share Earnings Per Share Earnings Per Share Earnings Per Share (a) Compute diluted earnings per share for 2007.
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