Problem VII. (14 points) Blue and Gold Company had the following capital structure: 12/31/2013 12/31/2012 Common Stock, $10 par value 1,200,000 shares 400,000 shares Preferred Stock, 10%, cumulative, $100 par value 10,000 shares 10,000 shares 5% Convertible Bonds $1,000,000 $1,000,000 Additional information regarding the company:•On March 1, 2013, the company sold 200,000 shares of common stock. •On October 1, 2013, the company sold 600,000 shares of common stock. •On November 1, 2013, the company bought 200,000 shares of common stock at $20 per share in the open market. The shares were to be held as Treasury Stock. •On December 1, 2013 there was a 20% stock dividend. •Net income for the year ended December 31, 2013 was $1,500,000. •The dividend on the preferred stock was declared and paid during 2013. •There were 20,000 stock options outstanding throughout all of 2013. Each option entitled the holder to purchase 1 share of common stock at $50 per share. The average market price of the company’s common stock was $75 per share during 2013. The options are exercisable from January 1, 2012 through January 1, 2015. To date, none have been exercised. •The bonds were originally issued at par. Each $1,000 bond can be converted into 100 shares of common stock. To date, none have been converted. •The company’s effective tax rate was 30% in 2012 and 2013. Required: Prepare all of the earnings per share calculations that must be presented for the company for the year ended December 31, 2013. Show all supporting calculations, use labels and good form in your answer.
11 Problem VII continued: (Use this page if you need more space.)
12 Problem VII continued: (Use this page if you need more space.)
13 Marquette University College of Business Administration ACCO 4020 EXAM I – Test Form A February 21, 2012 Name: _____________________________________ All of the following seven tasks MUST be done before you turn in your exam. 1) On this page above, print your name in the space provided. 2) On the ParSCORE answer sheet, print your name in the space provided. 3) On the ParSCORE answer sheet, code in (or bubble) your name in the space provided. 4) On the ParSCORE answer sheet, write your nine-digit Marquette identification number correctly in the space provided. (The right-most column should be blank.) 5) On the ParSCORE answer sheet, code in (bubble) your nine-digit Marquette identification number correctly in the space provided. (The right-most column should be blank.) 6) On the ParSCORE answer sheet, code in (bubble) your exam's test form version correctly in the TEST FORM space. 7) Select the best answer for each multiple-choice question & code your answers on the ParSCORE answer sheet. Problem Total Points Score I. Multiple- Choice (16) 32 II. 15 III. 10 IV. 9 V. 12 VI. 8 VII. 14 Total 100 Note: There are 12 pages to this exam. Please make sure your copy is complete. GOOD LUCK ON THE EXAM! Chapter 14: 5 MC at 10 + 25 = 35 points Chapter 15: 6 MC at 12 + 21 = 33 points Chapter 16: 5 MC at 10 + 22 = 32 points ----------- Total (16 MC at 2 points = 32) 100 pts Used Mike Akers Exam 1 and 2 from Spring 2009
14 Problem I. Multiple Choice, each worth 2 points each. Please transfer your answers to the Par Score answer sheet.
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