Rising Stars Limited (RSL) reported revenue of $3,120,000 and net income of $546,000 for the fiscal...
Rising Stars Limited (RSL) reported revenue of $3,120,000 and net income of $546,000 for the fiscal year end 30 June 2012. At 1 June 2011, RSL had 465,000 common shares outstanding and 60,000 common stock options outstanding with an exercise price of $14 each. During that fiscal year, the average market price for RSL's shares was $24 per share. RSL had no other potentially dilutive securities. What amount of shares would be used for the weighted average number of common stock in the calculation of diluted EPS for the 2012 fiscal year?
Group of answer choices
a. 490,000
b. 525,000
c. 500,000
Homework Answers
Calculation of weighted average number of shares for diluted EPS:
Common shares outstanding = 465,000
Add: Dilutive number of stock options = Number of options - Shares at market price
= 60,000 - (60,000*14)/24 = 25,000 shares
Weighted average number of common shares for the calculation of diluted EPS = 490,000
Hence, the answer is a.
Add Answer to:
Rising Stars Limited (RSL) reported revenue of $3,120,000 and
net income of $546,000 for the fiscal...
Oriole Corporation had net income for the current fiscal year of $600,000, and common shares outstanding...
Oriole Corporation had net income for the current fiscal year of $600,000, and common shares outstanding of 96,000. There were no changes to Oriole’s common shares during the year. Oriole also had outstanding a $1,000,000, 9% bond sold in a previous year that was convertible to 66,000 common shares. In addition, Oriole sold a new bond on October 1 of the current year. The new bond was a $1,000,000, 11% bond, convertible to 60,400 shares. Oriole was subject to a...
Splish Horizon Corp had the following items, all of which were outstanding throughout the entire fiscal...
Splish Horizon Corp had the following items, all of which were outstanding throughout the entire fiscal year ending September 30, 2021: ● 870,000 common shares ● 300,000 $3 cumulative, no-par value preferred shares ● Options to purchase 110,000 common shares at $13 per share. The average market price of Splish’s common shares during the year was $20 per share. None of the options were exercised or expired during fiscal 2021 ● 9% bond with a face value of $1,900,000, convertible...
Skysong Corporation reported Long-Term Liabilities and Shareholders' Equity in its December 31, 2020 balance sheet as...
Skysong Corporation reported Long-Term Liabilities and Shareholders' Equity in its December 31, 2020 balance sheet as follows: $7,500,000 $4,600,000 Long Term Liabilities: Bonds Payable 9% interest, convertible to 25 common shares/$1,000 bond Bonds Payable 5% interest, convertible to 30 common shares/$1,000 bond Shareholders' Equity: Class A Preferred shares $3.90 cumulative preferred share convertible into 7 common shares, 102,000 authorized, issued and outstanding Class B Common shares Unlimited number authorized 4,820,000 issued and outstanding $5,000,000 $28,920,000 All of the above reported...
Skysong Horizon Corp had the following items, all of which were outstanding throughout the entire fiscal...
Skysong Horizon Corp had the following items, all of which were outstanding throughout the entire fiscal year ending September 30, 2021: • 870,000 common shares • 330,000 $3 cumulative, no-par value preferred shares • Options to purchase 90,000 common shares at $11 per share. The average market price of Skysong's common shares during the year was $20 per share. None of the options were exercised or expired during fiscal 2021 • 9% bond with a face value of $1,800,000, convertible...
Flint Corporation had net income for the current fiscal year of $950,000, and common shares outstanding...
Flint Corporation had net income for the current fiscal year of $950,000, and common shares outstanding of 100,000. There were no changes to Flint's common shares during the year. Flint also had outstanding a $1,000,000, 10% bond sold in a previous year that was convertible to 82,000 common shares. In addition, Flint sold a new bond on October 1 of the current year. The new bond was a $1,000,000, 12% bond, convertible to 77,000 shares. Flint was subject to a...
Sheffield Horizon Corp had the following items, all of which were outstanding throughout the entire fiscal...
Sheffield Horizon Corp had the following items, all of which were outstanding throughout the entire fiscal year ending September 30, 2021: • 750,000 common shares • 290,000 $3 cumulative, no-par value preferred shares Options to purchase 110,000 common shares at $11 per share. The average market price of Sheffield's common shares during the year was $20 per share. None of the options were exercised or expired during fiscal 2021 • 9% bond with a face value of $2,100,000, convertible to...
(EPS with Options, Various Situations) Venezuela Company's net income for 2020 is $50,000. The only potentially...
(EPS with Options, Various Situations) Venezuela Company's net income for 2020 is $50,000. The only potentially dilutive securities outstanding were 1,000 options issued during 2019, each exercisable for one share at $6. None has been exercised, and 10,000 shares of common were outstanding during 2020. The average market price of Venezuela's stock during 2020 was $20. Question: (a)Compute diluted earnings per share. (Round to nearest cent.) Assume the same facts as (a) except that the exercise price is $60/share and...
The following information pertains to the Chow Corporation for the fiscal year ended December 31, YR7:...
The following information pertains to the Chow Corporation for the fiscal year ended December 31, YR7: Net Income for YR7 $1,200,000 8% convertible bonds issued at par ($1,000 per bond). Each bond is convertible into 40 shares of common stock. $2,000,000 7% convertible bonds issued at par ($1,000 per bond). Each bond is convertible into 15 shares of common stock. $1,500,000 6% convertible, cumulative preferred stock, $100 par value. Each share is convertible into 3 shares of common stock. $3,000,000...
Sage Corporation had a net income for the current year ending December 31, 2021 of $1,248,000....
Sage Corporation had a net income for the current year ending December 31, 2021 of $1,248,000. Throughout 2021 the following items were outstanding: ● 389,500 common shares ● 18,000 Class A $3 cumulative preferred shares that were convertible to common shares at a rate of 1:1 ● 49,500 Class B $4 non-cumulative preferred shares that were convertible at a rate of one common share for every two preferred shares. ● $496,000, 8% bonds that were convertible to 16,000 common shares...
Alciatore Company reported a net income of $150,000 in 2018. The weighted average number of common shares outstanding f...
Alciatore Company reported a net income of $150,000 in 2018. The weighted average number of common shares outstanding for 2018 was 40,000. The average stock price for 2018 was $33. Assume an income tax rate of 40%. Required: For each of the following independent situations, indicate whether the effect of the security is antidilutive for diluted EPS. 10,000 shares of 7.7% of $100 par convertible, cumulative preferred stock. Each share may be converted into two common shares. 8% convertible 10-year,...
Skysong Corporation reported Long-Term Liabilities and Shareholders' Equity in its December 31, 2020 balance sheet as follows: $7,500,000 $4,600,000 Long Term Liabilities: Bonds Payable 9% interest, convertible to 25 common shares/$1,000 bond Bonds Payable 5% interest, convertible to 30 common shares/$1,000 bond Shareholders' Equity: Class A Preferred shares $3.90 cumulative preferred share convertible into 7 common shares, 102,000 authorized, issued and outstanding Class B Common shares Unlimited number authorized 4,820,000 issued and outstanding $5,000,000 $28,920,000 All of the above reported...
Skysong Horizon Corp had the following items, all of which were outstanding throughout the entire fiscal year ending September 30, 2021: • 870,000 common shares • 330,000 $3 cumulative, no-par value preferred shares • Options to purchase 90,000 common shares at $11 per share. The average market price of Skysong's common shares during the year was $20 per share. None of the options were exercised or expired during fiscal 2021 • 9% bond with a face value of $1,800,000, convertible...
Flint Corporation had net income for the current fiscal year of $950,000, and common shares outstanding of 100,000. There were no changes to Flint's common shares during the year. Flint also had outstanding a $1,000,000, 10% bond sold in a previous year that was convertible to 82,000 common shares. In addition, Flint sold a new bond on October 1 of the current year. The new bond was a $1,000,000, 12% bond, convertible to 77,000 shares. Flint was subject to a...
Sheffield Horizon Corp had the following items, all of which were outstanding throughout the entire fiscal year ending September 30, 2021: • 750,000 common shares • 290,000 $3 cumulative, no-par value preferred shares Options to purchase 110,000 common shares at $11 per share. The average market price of Sheffield's common shares during the year was $20 per share. None of the options were exercised or expired during fiscal 2021 • 9% bond with a face value of $2,100,000, convertible to...
The following information pertains to the Chow Corporation for the fiscal year ended December 31, YR7: Net Income for YR7 $1,200,000 8% convertible bonds issued at par ($1,000 per bond). Each bond is convertible into 40 shares of common stock. $2,000,000 7% convertible bonds issued at par ($1,000 per bond). Each bond is convertible into 15 shares of common stock. $1,500,000 6% convertible, cumulative preferred stock, $100 par value. Each share is convertible into 3 shares of common stock. $3,000,000...
Alciatore Company reported a net income of $150,000 in 2018. The weighted average number of common shares outstanding for 2018 was 40,000. The average stock price for 2018 was $33. Assume an income tax rate of 40%. Required: For each of the following independent situations, indicate whether the effect of the security is antidilutive for diluted EPS. 10,000 shares of 7.7% of $100 par convertible, cumulative preferred stock. Each share may be converted into two common shares. 8% convertible 10-year,...
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 11 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 11 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 11 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 11 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 11 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 11 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 11 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 11 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 11 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 11 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 11 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 11 months ago