Question

With respect to the computation of earninqs per share,which of the following would be most indicative...

With respect to the computation of earninqs per share,which of the following would be most indicative of a simple capital structure?

A.        Common stock, preferred stock and convertible debt outstanding

B.        Common stock, convertible preferred stock, and and debt outstanding.

C.        Common stock, preferred stock, and debt outstanding.

D.        Common stock, preferred stock, and stock options outstandin

Homework Answers

Answer #1

With respect to computation of earnings per share , the option which would be most indicative of a simple capital structure is :-

Answer :- ( C ) common stock , preferred stock and debt outstanding

Explanation :- with respect to computation of EPS , the simplest capital structure out of given options is having common stock , preferred stock and debt outstanding . It would be easy computing EPS in this capital structure .

The other options given are complex capital structure with respect to EPS computation . Option A has convertible debt outstanding which is complex , option B has convertible preferred stock and option D has stock options outstanding which is complex .

So, option C is the answer .

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Class, indicate which of the following answers to the statement below represents the best choice, then...
Class, indicate which of the following answers to the statement below represents the best choice, then support your view. If another student has already answered the question and you agree, then indicate why one of the other choices is incorrect. With respect to the computation of earninqs per share,which of the following would be most indicative of a simple capital structure? A.        Common stock, preferred stock and convertible debt outstanding B.        Common stock, convertible preferred stock, and and debt outstanding. C.        Common stock,...
A complex capital structure requires? a. a dual presentation of earnings per share b. consists of...
A complex capital structure requires? a. a dual presentation of earnings per share b. consists of common stock and convertible preferred stock or convertible bonds c. applies only when a company has nonconvertible preferred stock or nonconvertible bonds d. both a and b
4.         The following information was taken from the books and records of Apple, Inc.:            ...
4.         The following information was taken from the books and records of Apple, Inc.:             Net income      $   270,000             Capital structure:             a.         Convertible 5% bonds. Each of the 300, $1,000 bonds is convertible                         into 50 shares of common stock at the present date and for the next 10 years.                      b.         $1 par common stock, 40,000 shares issued and outstanding                         during the entire year.             c.         Stock options outstanding to buy 11,000 shares of common...
5. Book value per common share equals a. total common shareholders’ equity divided by the number...
5. Book value per common share equals a. total common shareholders’ equity divided by the number of shares outstanding on the date of the balance sheet. b. total common shareholders’ equity divided by the weighted-average number of shares outstanding during the accounting period. c. total common shareholders’ equity divided by the number of shares outstanding on the beginning date of the income statement. d. total shareholders’ equity divided by the number of shares outstanding on the date of the balance...
Hondo inc, issued 1500 shares of 50$ per value convertible preferred stock at 80$ a share....
Hondo inc, issued 1500 shares of 50$ per value convertible preferred stock at 80$ a share. Each preferred share may be converted to 6 shares of 10$ per common stock. The entry to record the conversion of all would include a a.) debit to Preferred stock for $120,000 b.) debit to Additional paid-in Capital on Preferred stock for $90,000 c.) credit to Common stock for $120,000 d.) credit to Additional paid-in capital on common stock for $30,000
Western Electric has 23,000 shares of common stock outstanding at a price per share of $57...
Western Electric has 23,000 shares of common stock outstanding at a price per share of $57 and a rate of return of 14.2 percent. The firm has 6,000 shares of 7 percent preferred stock outstanding at a price of $48 a share. The preferred stock has a par value of $100. The company also has 350 corporate bonds, each with $1000 par value, and the bond currently sells for 102 percent of face. The yield-to-maturity on the debt is 8.49...
The earnings per share computation is not required for The earnings per share computation is not...
The earnings per share computation is not required for The earnings per share computation is not required for a. Gain on disposal of discontinued operation, net of tax b net Net income Income c from continuing operations d. Income from operations.
The following information was taken from the books and records of Cullumber, Inc.: 1. Net Income...
The following information was taken from the books and records of Cullumber, Inc.: 1. Net Income $391,400 2. Capital structure: a. Convertible 6% bonds. Each of the 290, $1,000 bonds is convertible into 50 shares of common stock at the present date and for the next 10 years. 290,000 b. $10 par common stock, 190,000 shares issued and outstanding during the entire year. 1,900,000 c. Stock warrants outstanding to buy 15,040 shares of common stock at $20 per share. 3....
Team Sports has 10 million shares of common stock outstanding, 2 million shares of preferred stock...
Team Sports has 10 million shares of common stock outstanding, 2 million shares of preferred stock outstanding, and 200 thousand bonds ($1,000 par). The common shares are selling for $40.00 per share, the preferred share are selling for $20 per share, and the bonds are selling at par. a.    What would be the weight used for common stock in the computation of Team's WACC? b.    What would be the weight used for preferred stock in the computation of Team's WACC?...
given the following year end information compute Greeneood corporations basic and diluted earnings per share. net...
given the following year end information compute Greeneood corporations basic and diluted earnings per share. net income 15,000 the income tax rate 30% 4000 shares of common stock were outstanding the entire year. 500 shares of 10% $50 par (and issuance price) convertible preferred stock were outstanding the entire year. dividends of 2500 were declared on this stock during the year. each share of prefferred stock is convertible into 5 shares of commin stock. need basic earning per share diluted...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT
Active Questions
  • Six men and six women are to be divided into three different groups, each consisting of...
    asked 6 minutes ago
  • Determine the effects of the following on a cash basis taxpayer’s gross income for 2018 and...
    asked 31 minutes ago
  • XYZ is a calendar-year corporation that began business on January 1, 2017. For 2018, it reported...
    asked 1 hour ago
  • Although aging and death are realities that all individuals have to deal with at some point...
    asked 1 hour ago
  • Implement the following functions with AVR assembly language 1) 2-byte addition (i.e, addition on 16-bit numbers)...
    asked 1 hour ago
  • Assume you have a chemical compound (HA) that is a weak acid which changes color upon...
    asked 2 hours ago
  • A company has two divisions. The first division consists of project management and generated $4,523,367 of...
    asked 2 hours ago
  • Practice Quiz 1 Use the following information to answer questions 1 through 5.                              &
    asked 2 hours ago
  • 3) The corrosion of iron is an electrochemical process that involves the standard reduction potentials given...
    asked 2 hours ago
  • Type or paste question here In 2015, the United States is still recovering from the recession....
    asked 2 hours ago
  • Failures of a critical machine part due to cyclical vibration has a gamma distribution with a...
    asked 3 hours ago
  • f(x)=ln(1+2x), a=4,n=3,3.7<=x<=4.3 (b) Use Taylor's Inequality to estimate the accuracy of the approximation f  Tn(x) when x...
    asked 3 hours ago