1 Jamison, Inc., had 450,000 shares of common stock issued and outstanding at January 1. On...

 

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1 Jamison, Inc., had 450,000 shares of common stock issued and outstanding at January 1. On July 1, an additional 50,000 shares of common stock 2 were issued for cash. In November, Jamison purchased 12,000 shares of its own stock for $22 each, anticipating an upcoming exercise of options. 4 Jamison had two potentially dilutive securities: 5 a) 20,000 shares of 5% convertible, cumulative $100 par value preferred stock were outstanding all year. Each share of preferred stock is convertible into four shares of common stock. 6 b) Jamison had $1,000,000 of 6% convertible bonds. Bond interest expense each year is decreased by $1,000 amortization of the premium. Each $1,000 bond is convertible into 30 shares of common stock. 8 9 10 Jamison also had unexercised stock options to purchase 40,000 shares of common stock at $15 per share outstanding at the beginning and end of the year. 11 The average market price of Jamison's common stock was $20 during the year. If net income is $1,250,000, and the tax rate is 21%, what will Jamison repo 12 as basic and diluted earnings per share for the year ended December 31? 13 1 Jamison, Inc., had 450,000 shares of common stock issued and outstanding at January 1. On July 1, an additional 50,000 shares of common stock 2 were issued for cash. In November, Jamison purchased 12,000 shares of its own stock for $22 each, anticipating an upcoming exercise of options. 4 Jamison had two potentially dilutive securities: 5 a) 20,000 shares of 5% convertible, cumulative $100 par value preferred stock were outstanding all year. Each share of preferred stock is convertible into four shares of common stock. 6 b) Jamison had $1,000,000 of 6% convertible bonds. Bond interest expense each year is decreased by $1,000 amortization of the premium. Each $1,000 bond is convertible into 30 shares of common stock. 8 9 10 Jamison also had unexercised stock options to purchase 40,000 shares of common stock at $15 per share outstanding at the beginning and end of the year. 11 The average market price of Jamison's common stock was $20 during the year. If net income is $1,250,000, and the tax rate is 21%, what will Jamison repo 12 as basic and diluted earnings per share for the year ended December 31? 13

Answer rating: 100% (QA)

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