1
answer
0
watching
328
views
puceyak894Lv1
28 Sep 2019
Adcock Corp. had $500,000 net income in 2007. On January 1, 2007there were 200,000 shares of common stock outstanding. On April 1,20,000 shares were issued and on September 1, Adcock bought 30,000shares of treasury stock. There are 30,000 options to buy commonstock at $40 a share outstanding. The market price of the commonstock averaged $50 during 2007. The tax rate is 40%.
During 2007, there were 40,000 shares of convertible preferredstock outstanding. The preferred is $100 par, pays $3.50 a yeardividend, and is convertible into three shares of commonstock.
Adcock issued $2,000,000 of 8% convertible bonds at face valueduring 2006. Each $1,000 bond is convertible into 30 shares ofcommon stock.
Instructions
Compute diluted earnings per share for 2007. Complete the scheduleand show all computations.
Adcock Corp. had $500,000 net income in 2007. On January 1, 2007there were 200,000 shares of common stock outstanding. On April 1,20,000 shares were issued and on September 1, Adcock bought 30,000shares of treasury stock. There are 30,000 options to buy commonstock at $40 a share outstanding. The market price of the commonstock averaged $50 during 2007. The tax rate is 40%.
During 2007, there were 40,000 shares of convertible preferredstock outstanding. The preferred is $100 par, pays $3.50 a yeardividend, and is convertible into three shares of commonstock.
Adcock issued $2,000,000 of 8% convertible bonds at face valueduring 2006. Each $1,000 bond is convertible into 30 shares ofcommon stock.
Instructions
Compute diluted earnings per share for 2007. Complete the scheduleand show all computations.
During 2007, there were 40,000 shares of convertible preferredstock outstanding. The preferred is $100 par, pays $3.50 a yeardividend, and is convertible into three shares of commonstock.
Adcock issued $2,000,000 of 8% convertible bonds at face valueduring 2006. Each $1,000 bond is convertible into 30 shares ofcommon stock.
Instructions
Compute diluted earnings per share for 2007. Complete the scheduleand show all computations.
Jarrod RobelLv2
28 Sep 2019
