(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

 

Additional information:

 

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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