Intermediate Accounting
3rd Edition
ISBN: 9780136912644
Author: Elizabeth A. Gordon; Jana S. Raedy; Alexander J. Sannella
Publisher: Pearson Education (US)
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Question
Chapter 20, Problem 20.2Q
To determine
To explain: Whether the firms adjust the numerator of EPS ratio for preferred dividends if dividends are declared.
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Students have asked these similar questions
1. The cost method of accounting for stock investments is used when the company acquires
a. Greater than 50% of the company's stock
b. Between 20% to 50% of the company's stock
c. Less than 20% of the company's stock
2. The significance of percentage of ownership relates to how much _____________ the acquiring company has in the new company.
a. data
b. control
c. confidence
The shareholders of ABC Corporation would like to know the valuation of their ownership in the entity. Relative valuation based on its two closest competitors will be made. The price-book value ratio will be used.
X Inc.
Y Co.
Market value of ordinary shares
5,980,000
7,020,000
Book Value of ordinary shares
5,200,000
6,000,000
ABC has a book value of ordinary shares at P5,800,000. This includes aninvestment property that provides additional income. It has a book value ofP420,000 but a market value of P650,000. Also, a material error in theaccounts payable was identified and it resulted to a P300,000understatement. After considering these, the remaining and corrected bookvalue can be valued using relative valuation. What is the total relative valueof ABC ordinary shares?
Use the method of comparable to calculate the value per share for company B.
the below table shows us sales, earning, book value, and share capital
Sales
Earning
Book value
Share Capital
Company A
22160
1952
16123
6050
Company B
26951
4262
12045
4744
Company C
306058
18396
72461
8970
The below table shows share price and par value for companies
Company A
Company B
Company C
Share price
0.470
???
2.190
Par value
0.100
1.000
0.100
Chapter 20 Solutions
Intermediate Accounting
Ch. 20 - Prob. 20.1QCh. 20 - Prob. 20.2QCh. 20 - If-Converted Method. Does the if-converted...Ch. 20 - Diluted EPS. If all potentially dilutive...Ch. 20 - Diluted EPS. Can diluted earnings per share on...Ch. 20 - Diluted EPS, Convertible Debt, and Preferred...Ch. 20 - Prob. 20.7QCh. 20 - Prob. 20.8QCh. 20 - Prob. 20.9QCh. 20 - EPS Disclosures. is an entity required to present...
Ch. 20 - Prob. 20.11QCh. 20 - Hutchins Company had 200,000 shares of common...Ch. 20 - Prob. 20.2MCCh. 20 - Prob. 20.3MCCh. 20 - Prob. 20.4MCCh. 20 - Refer to the information about Hutchins Company in...Ch. 20 - Prob. 20.6MCCh. 20 - Prob. 20.1BECh. 20 - Prob. 20.2BECh. 20 - Computing Income for Basic EPS. Russo Watches, Ltd...Ch. 20 - Prob. 20.4BECh. 20 - Compute Weighted-Average Number of Shares...Ch. 20 - Compute Weighted-Average Number of Shares...Ch. 20 - Prob. 20.7BECh. 20 - Prob. 20.8BECh. 20 - Prob. 20.9BECh. 20 - Prob. 20.10BECh. 20 - Prob. 20.11BECh. 20 - Computing Basic and Diluted EPS, Options. Nicks...Ch. 20 - Computing Diluted EPS, Convertible Debt. Axelon...Ch. 20 - Computing Basic and Diluted EPS, Preferred Stock....Ch. 20 - Computing Weighted-Average Number of Common Shares...Ch. 20 - Prob. 20.3ECh. 20 - Computing Basic and Diluted EPS, Convertible...Ch. 20 - Prob. 20.5ECh. 20 - Computing Basic and Diluted EPS, Convertible Bonds...Ch. 20 - Computing Basic and Diluted EPS, Convertible Bonds...Ch. 20 - Computing Basic and Diluted EPS, Convertible...Ch. 20 - Computing Basic and Diluted EPS, Options,...Ch. 20 - Computing Basic and Diluted EPS, Convertible...Ch. 20 - Computing Basic and Diluted EPS, Convertible...Ch. 20 - Prob. 20.12ECh. 20 - Prob. 20.1PCh. 20 - Prob. 20.2PCh. 20 - Computing Basic and Diluted EPS. Convertible...Ch. 20 - Prob. 20.4PCh. 20 - Computing Basic and Diluted EPS, Convertible...Ch. 20 - Computing Basic and Diluted EPS, Convertible...Ch. 20 - Prob. 20.7PCh. 20 - Prob. 20.8PCh. 20 - Prob. 1JCCh. 20 - Prob. 1FSCCh. 20 - Prob. 1SSCCh. 20 - Basis for Conclusions Case 1: Antidilutive...Ch. 20 - Basis for Conclusions Case 2: Treasury Stock...
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