reported net income of $1,000,000 for 2014. The tax rate was 40%. As of 1/1/14, 200,000 shares of common stock were outstanding. On 6/1/14 30,000 new shares were sold. There are no potentially dilutive securities outstanding but has 2,000 shares of 8% cumulative preferred stock ($10 par) which was outstanding all year. Calculate the Basic EPS- b. Bonus Issue What is your understanding of a bonus issue and how does it affect the number of shares of a company! Bennett Limited (financial excerpt) 2013 Net profit after interest and tax, but before dividend $100,000 NIL NIL NIL Preference dividend paid for 2013 Preference dividend paid for 2014 Ordinary dividend paid 2014 $200,000 $40,000 $40,000 $20,000 There are 100,000 ordinary shares of nett's fully paid in cash and 50,000 8% cumulative preference shares of nett's ($10) fully paid in cash outstanding as at 1 January 2013. 50,000 ordinary shares of nett's ($10) each were issued on July 1 2013 at full market value fully paid in cash. 75,000 ordinary shares issued as a bonus on 1 July 2014. 25,000 ordinary shares were bought back on 1 October 2014 at full market value. i Determine the weighted average number of shares for both year 2013 and 2014 What is the EPS for year 2013 and 2014
reported net income of $1,000,000 for 2014. The tax rate was 40%. As of 1/1/14, 200,000 shares of common stock were outstanding. On 6/1/14 30,000 new shares were sold. There are no potentially dilutive securities outstanding but has 2,000 shares of 8% cumulative preferred stock ($10 par) which was outstanding all year. Calculate the Basic EPS- b. Bonus Issue What is your understanding of a bonus issue and how does it affect the number of shares of a company! Bennett Limited (financial excerpt) 2013 Net profit after interest and tax, but before dividend $100,000 NIL NIL NIL Preference dividend paid for 2013 Preference dividend paid for 2014 Ordinary dividend paid 2014 $200,000 $40,000 $40,000 $20,000 There are 100,000 ordinary shares of nett's fully paid in cash and 50,000 8% cumulative preference shares of nett's ($10) fully paid in cash outstanding as at 1 January 2013. 50,000 ordinary shares of nett's ($10) each were issued on July 1 2013 at full market value fully paid in cash. 75,000 ordinary shares issued as a bonus on 1 July 2014. 25,000 ordinary shares were bought back on 1 October 2014 at full market value. i Determine the weighted average number of shares for both year 2013 and 2014 What is the EPS for year 2013 and 2014
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter13: Earnings Per Share (eps)
Section: Chapter Questions
Problem 1R: Ponce Towers, Inc., had 50,000 shares of common stock and 10,000 shares of 100 par value, 8%...
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