Thomas Corporation presented the following data : Net Income: $2,500,000 Preferred stock (1/1): 50,000 shares outstanding, $100 par, 8% noncumulative, convertible to common stock at 4 common shares to 1 preferred share. No dividends were declared - $5,000,000 Common Stock: Shares outstanding on 1/1: 750,000 Issued for cash on 4/1: 300,000 2-for-1 stock split on 7/1 Acquired treasury stock for cash on 10/1: 150,000 (Stock split also applies to the convertible preferred stock conversion rate) Determine weighted shares outstanding for diluted EPS? Determine diluted EPS (round to the nearest cent)?
Thomas Corporation presented the following data : Net Income: $2,500,000 Preferred stock (1/1): 50,000 shares outstanding, $100 par, 8% noncumulative, convertible to common stock at 4 common shares to 1 preferred share. No dividends were declared - $5,000,000 Common Stock: Shares outstanding on 1/1: 750,000 Issued for cash on 4/1: 300,000 2-for-1 stock split on 7/1 Acquired treasury stock for cash on 10/1: 150,000 (Stock split also applies to the convertible preferred stock conversion rate) Determine weighted shares outstanding for diluted EPS? Determine diluted EPS (round to the nearest cent)?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Thomas Corporation presented the following data :
Net Income: $2,500,000
Preferred stock (1/1): 50,000 shares outstanding, $100 par, 8% noncumulative, convertible to common stock at 4 common shares to 1
Common Stock:
Shares outstanding on 1/1: 750,000
Issued for cash on 4/1: 300,000
2-for-1 stock split on 7/1
Acquired
(Stock split also applies to the convertible preferred stock conversion rate)
Determine weighted shares outstanding for diluted EPS?
Determine diluted EPS (round to the nearest cent)?
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