Computing Diluted EPS: Stock Options
Rand Inc. had net income of $1,760,000. During the year, 400,000...
Computing Diluted EPS: Stock Options
Rand Inc. had net income of $1,760,000. During the year, 400,000
shares were outstanding on average and Rand's common stock sold at
an average market price of $50 per share. In addition, Rand had
40,000 stock options outstanding to purchase a total of 40,000
common shares at $25 for each option exercised.
Required
a. Compute basic EPS.
b. Compute diluted EPS.
Sonic Ltd. had 2,200,000 average shares outstanding during all
of 2017. During 2017, Sonic also had...
Sonic Ltd. had 2,200,000 average shares outstanding during all
of 2017. During 2017, Sonic also had 50,000 options outstanding
with exercise prices of $17 each. The average stock price of Sonic
during 2017 was $21. This company also had 1,000 shares of
preferred stock outstanding (10%, $100 par value) for the entire
year, which are each convertible into 20 shares of common stock.
Sonic had $3,200,000 net income for the year. Corporate tax rate is
30%.
a)What is the basic...
Basic Facts
Net Income: $450,000
100,000 shares of $5 par, common shares outstanding all year
20,000...
Basic Facts
Net Income: $450,000
100,000 shares of $5 par, common shares outstanding all year
20,000 non-convertible, $50 par, 8% cumulative preferred shares
outstanding all year
Tax rate: 30%
Example 1 – Additional Facts – Scenario #3
On January 1, the company granted 5,000 stock options to their
select managers. The options had an exercise price of $24. The
average market price of the company’s stock during the year was $30
per share. The options were the only dilutive securities...
3. Using the data given below, calculate fully diluted shares.
Assume the firm uses proceeds received...
3. Using the data given below, calculate fully diluted shares.
Assume the firm uses proceeds received from the conversion of
options to common shares to repurchase as many of these new shares
as possible. Calculating Fully Diluted Shares Outstanding $Million,
except per share data, shares in millions
Current Share Price $35.00
Basic Shares Outstanding 157.00
Options that can be Exercised 35.0
Weighted Average Exercise Price $18.00
Find total shares outstanding (basic shares plus new option
shares).
4. What is the...
The following information was obtained from Cyber Corporation's
annual report.
Common stock: shares outstanding
Balance on...
The following information was obtained from Cyber Corporation's
annual report.
Common stock: shares outstanding
Balance on January 1
500,000
April 1 - issued in conversion of preferred stock
200,000
July 1 - sold for cash
100,000
Balance on December 31
800,000
Preferred stock: shares outstanding
$10 par 8%, each convertible into two common shares
Shares outstanding, January 1
175,000
Converted on April 1 (into 200,000 common)
100,000
Shares outstanding at year-end
75,000
Options
100,000 options each to purchase...
Kweli Co. began the year with 1,700,000 shares issued and
outstanding. On March 1, 2017, the...
Kweli Co. began the year with 1,700,000 shares issued and
outstanding. On March 1, 2017, the company
enacted a 2:1 stock split. On August 1, 2017, the company
repurchased 500,000 shares.
Kweli Co. has the following potentially dilutive
instruments.
?
50,000 shares of $300 par value 10% preferred shares, each
convertible into 5 shares of common
stock.
?
200,000 options to purchase the firm’s $1 par value common stock
at an exercise price of $40 a
share. The options were...
Kweli Co. began the year with 1,700,000 shares issued and
outstanding. On March 1, 2017, the...
Kweli Co. began the year with 1,700,000 shares issued and
outstanding. On March 1, 2017, the company enacted a 2:1 stock
split. On August 1, 2017, the company repurchased 500,000 shares.
Kweli Co. has the following potentially dilutive instruments. •
50,000 shares of $300 par value 10% preferred shares, each
convertible into 5 shares of common stock. • 200,000 options to
purchase the firm’s $1 par value common stock at an exercise price
of $40 a share. The options were...
You are given the following information about DWWR Ltd:
- 130,000 common shares outstanding on Jan...
You are given the following information about DWWR Ltd:
- 130,000 common shares outstanding on Jan 1 2017
- 12,000 shares sold on March 1 2017
- 11,000 shares sold on Sept 1, 2017
-10% stock dividend issued on Oct 1 2017
-DWWR has agreed to issue an additional 10,000 shares to prior
shareholders if a lawsuit outstanding is resolved for less than
$125,000. This lawsuit was resolved Nov 1,2017 for $50,000. Shares
were issued Dec 1, 2017.
Calculate the...
Assume that the following data relative to Kane Company for 2018
is available:
Net Income
$2,760,000...
Assume that the following data relative to Kane Company for 2018
is available:
Net Income
$2,760,000
Transactions in Common Shares
Change
Cumulative
Jan. 1, 2018, Beginning number
720,000
Mar. 1, 2018, Purchase of treasury shares
(61,200)
658,800
June 1, 2018, Stock split 2-1
658,800
1,317,600
Nov. 1, 2018, Issuance of shares
240,000
1,557,600
6% Cumulative Convertible Preferred Stock
Sold at par, convertible into 210,000 shares of common
(adjusted for split).
$1,050,000
Stock Options
Exercisable at the option price of $25...
Red
cab Company had 50,000 shares of common stock outstanding on
January 1, 2021. On April...
Red
cab Company had 50,000 shares of common stock outstanding on
January 1, 2021. On April 1, 2021, The company issued 20,000 shares
of common stock. The company had outstanding fully vested stock
options for 5,000 shares exercisable at $10 that had not been
exercised by its executives. The end-of-year market price of common
stock was $13 while the average price for the year was $12. They
reported net income in the amount of $269,915 for 2021. what is the...