Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On January 1, 2011 APPLE . had 120000 shares, On April 1, 2011 APPLE sold 53000 shares, on July 1,2011 apple makes a 2:1 stock

image text in transcribed

On January 1, 2011 APPLE . had 120000 shares, On April 1, 2011 APPLE sold 53000 shares, on July 1,2011 apple makes a 2:1 stock split on Dec 1, 2011 apple distribute 0.1 stock dividend, Net income for 2011 was $2000000. The tax rate was 35%. In addition, Apple had the following debt and equity securities on its books on December 31, 2011: a. 30000 shares of $100 par, 0.1 cumulative preferred stock b. 3400 bond of, 0.1 interest, Each bond is converted into 40 shares of common stock. Face value $1000 c.45000 shares of $100 par, $1.7 cumulative preferred stock, par $100, Each share of preferred stock is convertible into 5 shares of common stock. what is the weighted average number of common stock what is the basic eps? what is the diluted EPS

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions