(Solution) If A Firm Just Paid A Dividend Equal To \$4.00 A Share, Then For The WACC, In Order To Find The Cost Of Equity, \$4 Should Be: (Points : | Snapessays.com

(Solution) If a firm just paid a dividend equal to \$4.00 a share, then for the WACC, in order to find the cost of equity, \$4 should be: (Points :

I need help with an Earning Per Share problem . attached please find details . please show all workAt January 1, 2013 xyz corporation had outstanding the following securities:

\$ 1,000,000, 5% cumulative convertible preferred shares, \$50 par; each share is convertible into

2 shares of common stock

7% convertible bonds, \$2,000,000 face value issued at par (\$1,000) per bond. Each bond is

convertible into 30 shares of common stock

\$ 6,000,000 common stock, \$ 10 par value

1.

On April 1, 2013 xyz purchased 100,000 shares of its common stock treasury stock.

2.

06/30/13 , xyz issued 4% stock dividend

3.

On 10/31/13, 50,000 shares of treasury stock were sold

4.

Common stock options outstanding as of 12/31/12 and exercisable in 2013 to purchase

40,000 shares at an exercise price of \$30

5.

The market price of the stock peaked on 10/31/13 at \$50 and on 12/31/13 the market

price of the stock closed at \$30; the average market price of stock during 2013 was \$40

6.

Net income for the year ended 12/31/13 was 1,500,000.

7.

The income tax rate for 2013 was 40%

Required:

Calculate basic and diluted EPS

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This question was answered on: May 23, 2022

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