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Accounting | Accounting homework help

Speed Inc. reported a net income equal to $15,000. The dividends declared and paid to the preferred shareholders equaled $5,000. Speed Inc. had 5,000 shares outstanding all year long. What value is Speed Inc.’s earnings per share?

a. $0.50

b. $1.00

c. $1.50

d. $2.00

 

Venzuela Company s net income for 2014 is $40,500. The only potentially dilutive securities outstanding were 1,400 options issued during 2013, each exercisable for one share at $8. None has been exercised, and 11,600 shares of common were outstanding during 2014. The average market price of Venzuela s stock during 2014 was $25.

(a) Compute diluted earnings per share. (Round answer to 2 decimal places, e.g., $2.55.)

(b) Assume the same facts as those assumed for part (a), except that the 1,400 options were issued on October 1, 2014 (rather than in 2013). The average market price during the last three months of 2014 was $25. (Round answer to 2 decimal places, e.g., $2.55.)

 

At December 31, 2012, and 2013, Funk & Noble Corporation had outstanding 600 million shares of common stock and 3 million shares of 6%, $100 par value cumulative preferred stock. No dividends were declared on either the preferred or common stock in 2012 or 2013. Net income for 2013 was $378 million. The income tax rate is 40%.

Calculate earnings per share for the year ended December 31, 2013.

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