the net income for the year ended December 31, 20x3 was $5,200,000the tax rate is 28%the following common stock transactions occurred during the year:March 1, 20x3 – Issued 300,000 sharesJuly 1, 20x3 – Repurchased and cancelled 140,000 sharesNovember 1, 20x3 – Issued 450,000 sharesHan declared total dividends of $800,000 in 20x3Required –a)Calculate the basic and diluted EPS for the year ended December 31, 20x3.b)Calculate the weighted average number of shares for purposes of calculatingBasic EPS if there was a 2:1 stock split on August 31, 20x3. Selected account balances of the Han Corporation as at December 31, 20x3 are asfollows:Convertible bonds, 5%$31,045,617Preferred Shares, Series A, $4, noncumulative, 60,000 shares issuedand outstanding, each preferred share is convertible into 3 common6,000,000sharesPreferred Shares, Series B, $5, cumulative, 35,000 shares issued and3,500,000outstandingCommon shares, 3,000,000 shares issued and outstanding42,000,000Additional Information –The convertible bonds were issued on December 31, 20x0 and mature onDecember 31, 20x20, The face value of the bonds is $30,000,000. The bonds wereissued to yield 4.7%. The bonds pay interest on June 30 and December 31 of eachyear. Each $1,000 bond is convertible into 20 common shares.In 20x3, Han purchased the shares of another company. As part of the agreement,Han agreed to issue an additional 80,000 shares on February 15, 20x4 if the netincome of the other company for the year ended December 31, 20x3 was inexcess of $1,000,000. The net income of the other company at December 31,20x3 was $1,200,000.Han has three stock option plans outstanding at December 31, 20x3:Series X: 20,000 options at an exercise price of $18Series Y: 15,000 options at an exercise price of $24Series Z: 45,000 options at an exercise price of $15the average stock price for the year was $21.

Earnings per share can be defined as the total revenue generated by shareholders per share, after…

the net income for the year ended December 31, 20x3 was $5,200,000 the tax rate is 28% the following common stock transactions occurred during the year: March 1, 20x3 - Issued 300,000 shares July 1, 20x3 – Repurchased and cancelled 140,000 shares November 1, 20x3 - Issued 450,000 shares Han declared total dividends of $800,000 in 20x3 Required- a) Calculate the basic and diluted EPS for the year ended December 31, 20x3. b) Calculate the weighted average number of shares for purposes of calculating Basic EPS if there was a 2:1 stock split on August 31, 20x3.

the net income for the year ended December 31, 20x3 was $5,200,000 the tax rate is 28% the following common stock transactions occurred during the year: March 1, 20x3 - Issued 300,000 shares July 1, 20x3 – Repurchased and cancelled 140,000 shares November 1, 20x3 - Issued 450,000 shares Han declared total dividends of $800,000 in 20x3 Required- a) Calculate the basic and diluted EPS for the year ended December 31, 20x3. b) Calculate the weighted average number of shares for purposes of calculating Basic EPS if there was a 2:1 stock split on August 31, 20x3.

Corporate Financial Accounting

14th Edition

ISBN:9781305653535

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter12: Corporations: Organization, Stock Transactions, And Dividends

Section: Chapter Questions

Problem 4COP: Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31,...

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