A firm has basis earning per share of $1.29. If the tax rate is 30%. which of the following securities would be dilutive? a. cumulative 8% $50 par preferred stock b. Ten Patent convertible bonds, issued at par. with each $1.000 band convertible into 20 shares of common stock c. Seven percent convertible bonds, issued at par, with each $1.000 bond convertible in 40 shares of common stock d. Six percent. $100 par cumulative convertible preferred stock, issued at par. with each preferred share convertible into four shares of common stock Jen Co. had 200.000 shares of common stock and 20.000 shares of 10%. $100 par value cumulative preferred stock. No dividends on common stock were declared during the year. Net income was $2,000,000. What was Jen's basic earnings per share? a. $9.00 b $9 09 c $10.00 d. $11.11 Medical imaging Co leased equipment to Family Care, lnc for 10 years beginning on January 1 Year 1. The first lease payment of $12,000 was made on January 1. Year 1 with all subsequent lease payments due annually on December 31 st. The equipment has an estimated use/id life of 12 years and its fair value is equal to the present value of the minimum lease payments. The interest rate implicit in the lease is 10% and is known to Family Care. Inc. Family (arc Inc's incremental borrowing rate is 11%. At the end of the lease term, Family Care Inc. does not have the option to purchase the equipment and ownership will not transfer. Present value amounts: PV of an annuity due of SI for 10 periods at l0% 6 "7 5') PV of an annuity due of SI for 10 periods at I 1% 6.SV) What type of lease will this transaction lie accounted for by the lease? a. operating lease b. Capital lease because only the 75% teat has been satisfied. c. Capital lease because both the 75% and 90% test have been satisfied d. Capital lease because only the90%)% test has been satisfied What interest rate is used in computing the present value of the lease the payment? a. Always use- the lessee's borrowing rate b. Always use- the lessee's borrowing rate c. Always use the greater of the lessor or lessee borrowing, rate d. Always use the lower of the lessor or lessee borrowing, rate