Curity 5. Based on the following, compute BEPS and DEPS for Abe Corporation: a. On January 1, 200x, there were 300,000 shares of Common Stock outstanding. b. C. d. On January 1, 200x, Abe issued 40,000 shares of 9%, $100 par Cumulative Convertible Preferred Stock. The conversion ratio was 3 shares of common for 1 share of preferred. On January 1, 200x, Abe issued $1,000,000 of 5% Convertible Bonds at par. Each $1,000 bond is convertible into 50 shares of common stock. On January 1, 200x, Abe offered Stock Options to selected employees for 40,000 shares at an option price of $30 per share. e. The income tax rate was 60%. f. The average market price of the common stock during 200x was $80 per share. g. Net Income for 200x was $1,800,000.
Curity 5. Based on the following, compute BEPS and DEPS for Abe Corporation: a. On January 1, 200x, there were 300,000 shares of Common Stock outstanding. b. C. d. On January 1, 200x, Abe issued 40,000 shares of 9%, $100 par Cumulative Convertible Preferred Stock. The conversion ratio was 3 shares of common for 1 share of preferred. On January 1, 200x, Abe issued $1,000,000 of 5% Convertible Bonds at par. Each $1,000 bond is convertible into 50 shares of common stock. On January 1, 200x, Abe offered Stock Options to selected employees for 40,000 shares at an option price of $30 per share. e. The income tax rate was 60%. f. The average market price of the common stock during 200x was $80 per share. g. Net Income for 200x was $1,800,000.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
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