Keanu Inc. has a net income of $200,000, average shares of common stock outstanding of 40,000, and preferred dividends for the period of $20,000.
What are Keanu’s earnings per share of common stock?
The following information is available for Barone Corporation:
| January 1, 2015 | Shares outstanding | 2,000 |
| April 1, 2015 | Shares issued | 320,000 |
| July 1, 2015 | Treasury shares purchased | 120,000 |
| October 1, 2015 | Shares issued in a 100% stock dividend | 2,200 |
The number of shares to be used in computing earnings per common share for 2015 is _____.
Maxwell Corp. had the following information related to common and preferred shares during the year.
Common shares outstanding, (1/1) 700,000
Common shares repurchased, (3/31) 20,000
Conversion of preferred shares, (6/30) 40,000
Common shares repurchased, (12/1) 36,000
Maxwell reported a net income of $2,000,000 at December 31. What amount of shares should Maxwell use as the denominator in the computation of basic earnings per share?
a. 682,000
b. 702,000
c. 740,000
d. 700,000
During the current year, East Corporation had two million shares of common stock outstanding. Two thousand convertible bonds – each with a $1,000 maturity value and promising 8% interest – were issued at face amount at the beginning of the year. Total annual interest expense: 2000 bonds x $1,000 x 8% = $160,000. To calculate the income tax rate: East reported income before tax of $6 million and net income of $3.6 million for the year. Each bond is convertible into 40 shares of common stock. What is diluted EPS?
A) $ 1.80
B) $ 1.78.
C) $ 1.68.
D) $ 1.20.
