Question

2. Floric Corporation has 400,000 common shares issued and outstanding. It also has 200,000 options outstanding...

2. Floric Corporation has 400,000 common shares issued and outstanding. It also has 200,000 options outstanding with a strike price of $4.00. Its current share price is $20.00 per share. Compute its fully diluted shares.

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Diluting share include all the convertible options which can be converted into shares and this will be including all such options outstanding which can be exercised but it will not be including options which can never be exercised.

These options which are mentioned are deep in the money options and hence they will be taken for calculation of diluted share, because they can be exercised.

Hence, the total amount of fully diluted share will be (4,00,000+2,00,000)= 6,00,000

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Pender Corporation has 500,000 common shares issued and outstanding. It has $2,000,000 of convertible preferred outstanding....
Pender Corporation has 500,000 common shares issued and outstanding. It has $2,000,000 of convertible preferred outstanding. It can be converted to common stock at the rate of 100 shares per $1,000 of Preferred. The current share price is $19.50. Compute its fully diluted shares.
1. Windsor Corporation had 318,000 shares of common stock outstanding on January 1, 2017. On May...
1. Windsor Corporation had 318,000 shares of common stock outstanding on January 1, 2017. On May 1, Windsor issued 31,500 shares. (a) Compute the weighted-average number of shares outstanding if the 31,500 shares were issued for cash. Weighted-average number of shares outstanding $ (b) Compute the weighted-average number of shares outstanding if the 31,500 shares were issued in a stock dividend. Weighted-average number of shares outstanding $ 2. Sarasota Corporation reported net income of $230,000 in 2017 and had 47,700...
Swifty Corporation had 1,000,000 shares of common stock issued and outstanding at December 31, 2020. On...
Swifty Corporation had 1,000,000 shares of common stock issued and outstanding at December 31, 2020. On July 1, 2021 an additional 1,000,000 shares were issued for cash. Swifty also had stock options outstanding at the beginning and end of 2021 which allow the holders to purchase 291000 shares of common stock at $28 per share. The average market price of Swifty’s common stock was $35 during 2021. The number of shares to be used in computing diluted earnings per share...
Santana Corporation has 400,000 shares of common stock outstanding throughout 2018. In addition, the corporation has...
Santana Corporation has 400,000 shares of common stock outstanding throughout 2018. In addition, the corporation has 5,000, 20-year, 9% bonds issued at par in 2016. Each $1,000 bond is convertible into 20 shares of common stock after 9/23/19. During the year 2018, the corporation earned $900,000 after deducting all expenses and taxes. The tax rate was 30%. Instructions:  Be certain to show your computations.              a.  Determine the primary earnings per share for 2018. b.  Determine diluted earnings per share (if appropriate).
On January 1, 2027, Ajax Corporation had 10 million shares of common stock, issued and outstanding....
On January 1, 2027, Ajax Corporation had 10 million shares of common stock, issued and outstanding. On October 1, 2027 Ajax issued an additional 1 million shares of common stock. Ajax also has $40 million face value, 6.25% convertible bonds outstanding for the entire year. The bonds are convertible into 2 million common shares. Ajax has a tax rate of 40% and net income of $14 million in 2027. What is Ajax’s diluted earnings per share for 2027? Question 6...
Ahnberg Corporation had 560,000 shares of common stock issued and outstanding at January 1. No common...
Ahnberg Corporation had 560,000 shares of common stock issued and outstanding at January 1. No common shares were issued during the year, but on January 1, Ahnberg issued 180,000 shares of convertible preferred stock. The preferred shares are convertible into 360,000 shares of common stock. During the year Ahnberg paid $108,000 cash dividends on the preferred stock. Net income was $1,060,000. What were Ahnberg's basic and diluted earnings per share for the year? (Round your answers to 2 decimal places.)...
Wildhorse Corporation reported net income of $386,100 in 2017 and had 217,000 shares of common stock...
Wildhorse Corporation reported net income of $386,100 in 2017 and had 217,000 shares of common stock outstanding throughout the year. Also outstanding all year were 51,000 options to purchase common stock at $10 per share. The average market price of the stock during the year was $15. Compute diluted earnings per share. (Round answer to 2 decimal places, e.g. 3.55.) Diluted earnings per share
CP 11‐2 Bagan Corporation, a profitable growth company with 200,000 shares of common stock outstanding, is...
CP 11‐2 Bagan Corporation, a profitable growth company with 200,000 shares of common stock outstanding, is in need of approximately $40 million in new funds to finance required expansion. Currently, there are no other equities outstanding. Management has three options open: A .Sell $40 million of 12‐per cent bonds at face value. b. Sell shares of 10% preferred stock: 400,000 shares at $100 each (dividend $10 per share). c. Sell another 200,000 shares of common stock at $200each.Operating income (before...
Ajax Enterprises had 220,000 shares of common stock issued and outstanding at December 31, 2025. Unexercised...
Ajax Enterprises had 220,000 shares of common stock issued and outstanding at December 31, 2025. Unexercised stock options to purchase 40,000 shares of common stock at $20 per share were outstanding at the beginning and end of 2026. The market price of Glendale's common stock was $25 per share during 2026. Net income for the year ended December 31, 2026, was $1,100,000. What should be Ajax's 2026 diluted earnings per common share, rounded to the nearest penny? Ajax Corporation began...
ABC Corporation has 10,000 shares $2 par value common stock issued and outstanding. Record the following...
ABC Corporation has 10,000 shares $2 par value common stock issued and outstanding. Record the following transactions: Purchased 400 shares of its own $2 par value common stock for $ 20 per share. Sold 150 shares of treasury stock purchased in (a) for $22 per share. Sold 100 shares of treasury stock purchased in (a) for $20 per share. Sold the remaining 150 shares of treasury stock purchased in (a) for $16 per share.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT