Question: PART TWO: ESSAY QUE 1. Use the following data for APPLE INC. to find the basic and diluted EPS (total 10 marks) Date Description Jan

PART TWO: ESSAY QUE 1. Use the following data for APPLE INC. to find the basic and diluted EPS (total 10 marks) Date

PART TWO: ESSAY QUE 1. Use the following data for APPLE INC. to find the basic and diluted EPS (total 10 marks) Date Description Jan 1st 2010 150,000 common stock outstanding April 1" 2010 80,000 new issuance July 1 2010 12% stock dividend September 15 2010 30,000 treasury stock December 31 2010 2 for one stock split Additional information . . Net income $1.8 million. Average market value per share of $70. 100,000 outstanding warrants at exercise price of $60. 55,000 Convertible preferred stock with $8 dividend per share, and each p stock can be converted into 2 common stocks. 12 million dollars outstanding convertible bond 1000$ par value and 6% maturity, each bond can be converted into 22 stocks. Tax rate 40%. . A) Find the weighted average number of shares outstanding. (4 marks) B) Find the basic earning per share (EPS). (2 marks) C) Find the diluted earning per share (DEPS). (4 marks) Dag 7 of 8

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