During 2016, QBE Inc. reported net income of $150,000 and had 100,000 shares of common stock and 1,000 shares of preferred stock outstanding for the entire year. QBE’s 10%, $100 par value preferred shares are each convertible into 40 shares of common stock. If the tax rate is 40%, what is the diluted EPS for this company? A. $1.10 B. $1.00 C. $1.07 D. $0.79

During 2016, QBE Inc. reported net income of $150,000 and had 100,000 shares of common stock and 1,000 shares of preferred stock outstanding for the entire year. QBE’s 10%, $100 par value preferred shares are each convertible into 40 shares of common stock. If the tax rate is 40%, what is the diluted EPS for this company? A. $1.10 B. $1.00 C. $1.07 D. $0.79

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

See similar textbooks

Similar questions

reported net income of $1,000,000 for 2014. The tax rate was 40%. As of 1/1/14, 200,000 shares of common stock were outstanding. On 6/1/14 30,000 new shares were sold. There are no potentially dilutive securities outstanding but has 2,000 shares of 8% cumulative preferred stock ($10 par) which was outstanding all year. Calculate the Basic EPS. b. Bonus Issue What is your understanding of a bonus issue and how does it affect the number of shares of a company? Bennett Limited (financial excerpt) 2013 Net profit after interest and tax, but before dividend $100,000 Preference dividend paid for 2013 NIL Preference dividend paid for 2014 NIL Ordinary dividend paid NIL 2014 $200,000 $40,000 $40,000 $20,000 There are 100,000 ordinary shares of nett's fully paid in cash and 50,000 8% cumulative preference shares of nett's ($10) fully paid in cash outstanding as at 1 January 2013. 50,000 ordinary shares of nett's ($10) each were issued on July 1 2013 at full market value fully paid in cash.…
Interest versus dividend expense Michaels Corporation expects earnings before interest and taxes to be $48,000 for the current period. Assuming a flat ordinary tax rate of 27%, compute the firm's earnings after taxes and earnings available for common stockholders (earnings after taxes and preferred stock dividends, if any) under the following conditions: a. The firm pays $13,000 in interest. b. The firm pays $13,000 in preferred stock dividends. a. Complete the fragment of Michaels Corporation's income statement below to compute the firm's earnings after taxes and earnings available for common stockholders under condition (a) (Round to the nearest dollar) EBIT $ Less: Interest expense Earnings before taxes $ Less: Taxes (27%) Earnings after taxes $ Less: Preferred dividends Earnings available for common stockholders
On 1 October 2013, Hoy had R2-5 million of equity shares of 50 cents each in issue. No new shares were issued during the year ended 30 September 2014, but on that date there were outstanding share options to purchase 2 million equity shares at R1.20 each. The average market value of Hoy's equity shares during the year ended 30 September 2014 was R3 per share. Hoy's profit after tax for the year ended 30 September 2014 was R1 550 000. In accordance with IAS 33 Earnings per Share, what is Hoy's diluted earnings per share for the year ended 30 September 2014? Select one: O a. 25.0 cents O b. 41.9 cents O c. 31.0 cents O d. 22.1 cents
nku.2
Alciatore Company reported a net income of $150,000 in 2018. The weighted-average number of commonshares outstanding for 2018 was 40,000. The average stock price for 2018 was $33. Assume an income tax rateof 40%.Required:For each of the following independent situations, indicate whether the effect of the security is antidilutive fordiluted EPS.1. 10,000 shares of 7.7% of $100 par convertible, cumulative preferred stock. Each share may be converted intotwo common shares.2. 8% convertible 10-year, $500,000 of bonds, issued at face value. The bonds are convertible to 5,000 shares ofcommon stock.3. Stock options exercisable at $30 per share after January 1, 2020.4. Warrants for 1,000 common shares with an exercise price of $35 per share.5. A contingent agreement to issue 5,000 shares of stock to the company president if net income is at least$125,000 in 2019.
In 20X2, the corporate tax rate is 20% and a firm has net income of $1,200. Its capital structure consists of 400 common shares outstanding, 50 executive stock options issued on July 1, 20X2, with exercise prices of $30. In 20X2, the firm pays dividends of $3 per common share. The average stock price is $35 during the first half of the year, $45 during the second half of the year. What is the firm's diluted earnings per share for 20X2?
Jerry Jeff, Inc. has 14,900 shares of common stock outstanding at a price per share of $77 and the rate of return on the stock is 11.69 percent. The value of Jerry Jeff's debt is $586,800 and the required rate of return on the debt is 6.17 percent. What is the Jerry Jeff's WACC if the tax rate is 21 percent? Multiple Choice 9.82% 8.53% 8.70% 9.38%
Fisafolia Corporation has gross income from operations of $426,600 and operating expenses of $362,610 for 2020. The corporation also has $42,660 in dividends from publicly-traded domestic corporations in which the ownership percentage was 45 percent. Below is the Dividends Received Deduction table to use for this problem. Percent Ownership 2020 DividendsReceived Percentage Less than 20 percent 50% 20 percent or more, but less than 80 percent 65% 80 percent or more 100% Assume that instead of $426,600, Fisafolia Corporation has gross income from operations of $350,000. Calculate the corporation's dividends received deduction for 2020.
1. for of $770,000 from a yder ts) Finley Corporation had income before income taxes 2914 of $6,300,000. In addition, it suffered a pretax gain discontinued operation. The corporation's tax rate is 30%. Prepare a partial income statement for Finley Corporation beginning with income before income taxes. The corporation had 5,000,000 shares of common stock outstanding during 2014. 20
TKK Co., a firm that has 10,000 preferred outstanding shares, determined its financial break-even point at P540,000. The tax rate applicable to the firm is 50%. The dividend yield for the preferred shares is 25% and these shares are trading at a price of P100. How much is the annual interest paid by TKK Co.?
Blue Co., a firm that has 10,000 preferred outstanding shares, determined its financial break-even point at P540,000. The tax rate applicable to the firm is 50%. The dividend yield for the preferred shares is 25% and these shares are trading at a price of P100. How much is the annual interest paid by Blue Co.?

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS