Answered step by step
Verified Expert Solution
Question
1 Approved Answer
ABC Company had 100,000 shares of common stock outstanding on January 1, 2024. - On September 30,2024,ABC sold 41,000 shares of common stock for cash.
ABC Company had 100,000 shares of common stock outstanding on January 1, 2024. - On September 30,2024,ABC sold 41,000 shares of common stock for cash. - ABC also had 6,500 shares of cumulative convertible $100 par, 5% preferred stock outstanding throughout 2024. It is convertible into 3 shares of common for each share of preferred. - ABC also had $430,000 in 7%, convertible bonds outstanding throughout 2024 . Bonds are convertible into 12,900 shares of common stock. - Reported net income for 2024 was $280,000 with a 25% tax rate. - Common shareholders received $1.30 per share dividends after preferred dividends were paid in 2024. Answer the following questions: 1. What is the amount of the preferred stock dividend? (whole number) 2. How many weighted outstanding shares are there for 2024 ? (whole number) 3. What is the basic EPS numerator? (whole number) 4. What is the basic EPS denominator? (whole number 5. What is Basic EPS? (round to 2 decimal places) 6. What is the interest on the bonds? (whole number) 7. How much tax cost relates to the interest? (whole number) 8. What is the diluted EPS numerator? (whole number) 9. What is the dituted EPS denominator? (whole number 10. What is the difuted EPS? (round to 2 decimal places)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started