Assume that the following data relative to XYZ Company for 2017 is available: Net Income |
|
|
|
| $2,100,000 |
|
|
|
|
|
|
|
| Transactions in Common Shares |
| Change |
|
| Cumulative |
| Jan. 1, 2017, Beginning number |
|
|
|
| 550,000 |
| Mar. 1, 2017, Purchase of treasury shares |
| (42,400 | ) |
| 665,600 |
| June 1, 2017, Stock split 2-1 |
| 656,600 |
|
| 1,233,200 |
| Nov. 1, 2017, Issuance of shares |
| 228,000 |
|
| 1,561,200 |
|
|
|
|
|
|
|
| 8% Cumulative Convertible Preferred Stock |
|
|
|
|
|
| Sold at par, convertible into 180,000 shares of common (adjusted for split). |
|
|
|
| $900,000 |
|
|
|
|
|
|
|
| Stock Options |
|
|
|
|
|
| Exercisable at the option price of $25 per share. Average market price in 2017, $30 (market price and option price adjusted for split). |
|
|
|
| 93,000 | shares |
|
