XYZ Corporation has the following stock information for the year ending December 31, 2020: Jan 1st 2020
Question:
XYZ Corporation has the following stock information for the year ending December 31, 2020:
Jan 1st 2020 Beginning balance of shares issued and outstanding 100,000
March 1st 2020 Issued shares 20,000
July 1st 2020 Stock dividends 20%
Sept 1st 2020
Purchased back shares 40,000
December 1st 2020 Stock split 3 for 1
Other financial information: Net income $ 20,000,000 Tax rate 40% Preferred stock:
Preferred stock: 50,000 shares outstanding, $100 par value, 8% cumulative, not convertible
Bonds:
On September 1st, 2015, XYZ sold at face value 500 of its 10%, 20-year, $1,000 face value bonds.
Each bond is convertible to 100 shares Bonds pay interest annually.
Cash Dividends:
Declared in 2020 Zero Paid in 2020 dividends declared in 2019 $ 80,000 Calculate diluted EPS.
Financial Accounting An Integrated Statements Approach
ISBN: 978-0324312119
2nd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren