Reference no: EM13127375
On December 31, 2010, Dow Steel Corporation had 605,000 shares of common stock and 300,000 shares of 8%, noncumulative, nonconvertible preferred stock issued and outstanding. Dow issued a 6% common stock dividend on May 15 and paid cash dividends of $400,000 and $75,000 to common and preferred shareholders, respectively, on December 15, 2011.
On February 28, 2011, Dow sold 60,500 common shares. In keeping with its long-term share repurchase plan, 2,000 shares were retired on July 1. Dow's net income for the year ended December 31, 2011, was $2,200,000. The income tax rate is 40%.
As part of an incentive compensation plan, Dow granted incentive stock options to division managers at December 31 of the current and each of the previous two years. Each option permits its holder to buy one share of common stock at an exercise price equal to market value at the date of grant and can be exercised one year from that date. Information concerning the number of options granted and common share prices follows:
Date Granted Options Granted Share Price
(adjusted for the stock dividend)
December 31, 2009 4,000 $ 33
December 31, 2010 9,000 $ 24
December 31, 2011 7,500 $ 31
The market price of the common stock averaged $32 per share during 2011.
Required:
Compute Dow's earnings per share for the year ended December 31, 2011. (Do not round intermediate calculations. Round your answers to 2 decimal places.
|
Illustrate what do think investor would be willing to pay
: If this investor believed that by owning the company he could extract &5000 per year in cash from the company in perpetuity, Illustrate what do think the investor would be willing to pay for the firm if the required return on the investment is 10%..
|
|
Kinds of stationary phases used for column chromatography
: What types of stationary phases used for column chromatography and HPLC? How these staionary phase work and what types of compounds can be separated using this?
|
|
Twenty percents of loans are larger than what amount
: Normally distributed with a mean of $70,000 and a standard deviation of $20,000. Twenty percents of the loans are larger than what amount?
|
|
How many moles of oxygen were in the sample
: If 5.50 g of the unknown compound contained 0.183 mol of C and 0.367 mol of H, how many moles of oxygen, O, were in the sample?
|
|
Earnings per share for the year
: Compute Dow's earnings per share for the year ended December 31, 2011. (Do not round intermediate calculations. Round your answers to 2 decimal places.
|
|
Find the slope of the line
: Find the slope of the line that passes through (7, 3) and (9, 6). Simplify your answer and write it as a proper fraction, improper fraction, or integer.
|
|
What is the volume of propylene glycol
: If 50.00mL of propylene glycol has am ass of 51.80g, what is its density in SI units (kg/m^3).
|
|
How much toothpaste expect to be remaining in tube
: We can determine the following information about the amount remaining in a toothpaste tube without invading anyones privacy. How much toothpaste would you expect to be remaining in the tube?
|
|
Retention time is changed with real samples
: In HPLC, how often should I need to run standard with samples? Why? If the retention time is changed with real samples compared to standard
|