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Atlas, Inc., has the following capital structure at January 1,

Atlas, Inc., has the following capital structure at January 1, 2008. During 2008, Atlas had the following

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Atlas, Inc., has the following capital structure at January 1, 2008.

During 2008, Atlas had the following stock transactions:
May 1 Issued 50,000 shares of common stock for $30 per share.
Aug. 1 Purchased 100,000 shares of treasury stock at $35 per share.
Oct. 1 Converted $2,000,000 of bonds.
Net income for 2008 was $950,000. The income tax rate was 30%. Compute basic and diluted EPS for Atlas for2008.

Capital Structure
Capital structure refers to a company’s outstanding debt and equity. The capital structure is the particular combination of debt and equity used by a finance its overall operations and growth. Capital structure maximizes the market value of a...

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Outstanding Common stock, $10 par.... 800,000 shares 1% stated interest rate convertible bonds issued at par; each $1,000 bond is convertible into 80 shares of common stock $5,000,000

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Basic EPS Net income 950000 Weightedaverage number of shares Jan 1 to May 1 800000 X 412 266667 May ...View the full answer

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Intermediate Accounting

ISBN: 978-0324312140

16th Edition

Authors: James D. Stice, Earl K. Stice, Fred Skousen

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Question Posted: Apr 08, 2012 12:25 PM

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