Question
On January 1st, 2020 Joody corporation had 10,000 ordinary shares (C.S) outstanding. During the year, the following transactions affected the ordinary shares: March 15: Issued
On January 1st, 2020 Joody corporation had 10,000 ordinary shares (C.S) outstanding. During the year, the following transactions affected the ordinary shares: March 15: Issued 30,000 Shares. June 1: Issued a 20% stock dividend. July 1: Acquired 5,000 shares of treasury stock. September 1: Issued a 10-for-1 stock split. December 1: 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 bond and clarify its impact on the earning per share?
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