Calculate the weighted average number of common shares

Assignment Help Accounting Basics
Reference no: EM132724690

Question - One company had 40,000 common shares outstanding for all of 2020. Additionally, the company had 20,000 convertible preferred shares outstanding, issued in 2019. Each preferred share is convertible into two common shares. On August 1, 2020, 18,000 preferred shares were converted to common shares. Also, the company issued 30,000 options on July 1, 2020. The options allow you to buy 30,000 common shares at $ 25 per share. The average market price for the second half of 2020 was $ 30 per share. On October 1, 2020, 12,000 options were exercised.

Required -

1. Calculate the weighted average number of common shares outstanding for the purpose of 2020 basic earnings per share.

2. Calculate the weighted average number of common shares outstanding for 2020 diluted earnings per share.

Reference no: EM132724690

Questions Cloud

Think the principles of effective treatment : Why do you think the Principles of Effective Treatment are not utilized in every treatment program and setting across the country?
Develop aicpa auditing standards : What is the process the AICPA Auditing Standards Board (ASB) uses to develop AICPA auditing standards
How much is the cash settlement received by i and p : How much is the cash settlement received by I and P? Explain the answer. I and P are to contribute the merchandise, V is to act as the manager
Health care organizations : Conduct a research on one of the top fifteen health care organizations in the U.S. How will you find listings of the top fifteen health care systems?
Calculate the weighted average number of common shares : Calculate the weighted average number of common shares outstanding for the purpose of 2020 basic earnings per share
What are the expected cash receipts for march : Big City Manufacturing (BCM) is preparing its cash budget and expects to have sales of $450,000 in January, $375,000 in February, and $555,000 in March
Electronic health record environment : Eevaluate how they differ in their training requirements to be prepared to work in an electronic health record environment.
How much is the bonus to so : So, Sa, and Se formed a joint venture. How much is the bonus to So? Explain the answer. How much is the share of Sa in the venture profit? Explain the answer.
Calculate the total book value of meyer common stock : An analyst gathers the following information about Meyer, Inc.:

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd