Required: Calculate Basic and Dilutive Earnings per Share (show


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Aug 15, 2014. Required: Calculate Basic and Dilutive Earnings per Share (show all calculations) Use the treasury stock method for the options (if necessary). ATTACHMENT PREVIEW Download attachment Midterm.docx Diluted EPS Problem Net income for the Zipper Company in 2013 was $1,400,000. Zipper issued in 2012, at par, 75, $1,000, 8% bonds, each convertible into 100 shares of common stock. Zipper issued in 2011, 40,000 shares of 6% convertible, cumulative preferred stock, $100 par value. Each share is convertible into 1 share of common stock. Zipper had outstanding 1,000 options issued during 2012, each exercisable for one share at $8. None has been exercised. The average market price of the stock during 2013 was $20. Zipper’s tax rate is 40%. Date Event Shares outstanding Jan 1, 2013 March 1 June 1 Nov 1 Nov 15 Beginning balance Issued 60,000 shares Purchased 78,000 treasury stock Issued 120,000 shares Issued 2 for 1 stock split 180,000 Required: Calculate Basic and Dilutive Earnings per Share (show all calculations) Use the treasury stock method for the options (if necessary). Read more An2012
posted a question · Aug 14, 2014 at 9:29am

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