Assignments:
First Name	Problem
A E	A
F K	B
L P	C
Q - Z	D
A. Dunbar Company had 1,000,000 shares of $1 par value common stock outstanding at January 1, 2018. On July 1, 2018, the company issued 400,000 additional shares of common stock. In addition, at December 31, 2018, 100,000 shares were issuable upon exercise of executive stock options which require a $60 cash payment upon exercise.
The average market price during 2018 was $75.
Dunbar Company also has two convertible securities. There are 20,000 convertible bonds with a face amount of $1,000, interest rate of 7% and convertible into 25 shares of common stock and 500,000 shares of 5%, $50 par value convertible preferred stock, convertible into 5 shares each. There are 2 warrants issued with each share of preferred stock with a strike price of $85.
During 2018, Dunbar Companys net income was $25,000,000 and all preferred stock dividends were declared and paid. The companys tax rate is 30%.