During the current year, East Corporation had 3 million shares of common stock outstanding. 2,600, $1,000, and 7% convertible bonds were issued at face amount at the beginning of the year. East reported income before tax of $9 million and net income of $5.4 million for the year. Each bond is convertible into 10 shares of common stock.
What is diluted EPS?
A corporate charter specifies that the company may sell up to 38 million shares of stock. The company sells 30 million shares to investors and later buys back 12.0 million shares. The number of authorized shares after these transactions are accounted for is:
a. 38 million shares.
b. 26 million shares.
c. 18 million shares.
d. 30 million shares.
Phelps, Inc. had assets of $101,466, liabilities of $21,646, and 14,838 shares of outstanding common stock at December 31, 2015. Net income for 2015 was $10,980. The company had assets of $119,151, liabilities of $25,971, 12,031 shares outstanding, and its stock was trading at a price of $10 per share at December 31, 2016. Net income for 2016 was $11,203.
a. Calculate EPS for 2016.
b. Calculate ROE for 2016.
c. Calculate the Price/Earnings Ratio for 2016.
Dublin Inc. had the following common stock record during the current calendar year:
Outstanding beginning of year | 2,800,000 |
Additional shares issued 6/30 | 180,000 |
Additional shares issued 9/30 | 180,000 |
A 12% stock dividend was paid on December 1.
What is the number of shares to be used in computing basic EPS?
A. 3,287,200
B. 2,935,000
C. 3,337,600
D. 3,236,800