At the end of 2020, the records of Wolverine Corporation reflected the following. Common stock, $10 par;
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Question:
At the end of 2020, the records of Wolverine Corporation reflected the following.
Common stock, $10 par; authorized 140,000 shares: issued and outstanding throughout the year, | |||
70,000 shares | $700,000 | ||
Preferred stock, $50 par, 7%, cumulative, convertible into common stock, share for share; | |||
authorized, 14,000 shares; issued and outstanding throughout the year, 2,800 shares | 140,000 | ||
Contributed capital in excess of par, common stock | 112,000 | ||
Retained earnings (no dividends declared during the year) | 658,000 | ||
Bonds payable, 10% nonconvertible, issued at par in 2016 | 210,000 | ||
Net income | 180,000 | ||
Stock options outstanding (all year for 14,000 shares of common stock at $15 per share) | |||
Income tax rate, 25% | |||
Average market price of the common stock during 2020, $25 per share |
Required
a. Is this a simple or a complex capital structure?
AnswerSimple structureComplex structure |
b. Compute the required EPS amounts.
- Note: Round earnings per share amounts to two decimal places.
- Note: If an amount is not required, leave the answer blank (zero).
Net Income Available to Common Stockholders | Weighted Avg. Common Shares Outstanding | Per Share | |
---|---|---|---|
Basic EPS | Answer | Answer | Answer |
Diluted EPS | Answer | Answer | Answer |
Related Book For
Intermediate Accounting Reporting and Analysis
ISBN: 978-1285453828
2nd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
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