1)Beta began operations on the first day of the year. On that day they issued 10,000 shares....
Question:
1)Beta began operations on the first day of the year. On that day they issued 10,000 shares. On March 1 they issued 20,000 shares and on July 1, another 30,000 shares. On December 1, they repurchased 5,000 shares of outstanding shares. Compute the weighted-average shares of stock for the first year of operation.
2)Compute Beta’s basic EPS for the first year of operation if net income was $60,000.
3)Gamma reported $600,000 net income for the year with 100,000 common shares outstanding all year. It also had 50,000 shares of $100 par, 8% convertible preferred shares outstanding all year. Each preferred share is convertible into 10 shares of common stock. Determine basic and diluted EPS.
4)Alpha reported net income of $500,000 for the year. It has 200,000 shares of common stock outstanding all year. Two years ago the company granted 20,000 stock options that allow employees to purchase shares for $15 each. The company stock has averaged $20 in the market during the year. Compute the basic and diluted EPS.
Financial and Managerial Accounting
ISBN: 978-1285866307
13th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac