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On January 1st 2020 Joody corporation had 10,000 of ordinary shares (C.S) outstanding. During the year, the following transactions affected the ordinary shares: March 15:
On January 1st 2020 Joody corporation had 10,000 of ordinary shares (C.S) outstanding. During the year, the following transactions affected the ordinary shares: March 15: June 1: July 1: September 1: December 1: Issued 30,000 Shares. Issued a 20% stock dividend. Acquired 5,000 share of treasury stock. Issued a 10-for-1 stock split. Reissued 5,000 shares of treasury stock. Instructions: 1- What is the weighted average number of shares outstanding? (3.5 Points) 2- Assume the net income of the company is $50,000 and the preferred dividends $10,000. Compute EPS. (1.5 Point) 3- If the company on November 1 transferred $100,000 Bonds to 5,000 ordinary shares: a- What would be the total shares at that date only? (1 point) b- Define this type of bonds and clarify its impact on the earning per share? (4 Points)
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