Exam 18: Earnings Per Share

The following information applies to the next three questions: Tangier Corporation currently has stock rights outstanding for 2,000 common shares.The exercise price of these shares is $25.The options were issued in January of 2012.The average market price of the related common stock during the year 2012 was $30.The average market price of the related common stock during 2013 was $26 and during 2014 was $21.The company's fiscal year ends on December 31 of each year. -How should these stock rights be treated in earnings per share calculations for the year ending December 31,2012?

Earnings per share information should be reported for all of the following except

At December 31,2013,Joplin Company had 350 shares of common stock outstanding.On October 1,2014,an additional 150 shares of common stock were issued.In addition,Joplin had $40,000 of 8 percent convertible bonds outstanding at December 31,2014,which are convertible in 225 shares of common stock.No bonds were converted into common stock in 2014.Net income for the year ended December 31,2014,was $14,000.Assuming an income tax rate of 50%,the basic earnings per share for the year ended December 31,2014,would be

During all of 2014 Rambler Manufacturing Company had 950,000 shares of common stock outstanding.On June 30,2014,the company issued 10,000 7 percent convertible bonds at par.The maturity value of each bond is $1,000.Each bond is convertible into 20 shares of common stock.None were converted during 2014. Rambler also had 60,000 stock warrants outstanding for all of 2014.The option price is $10 per share.The market price of the common stock was $40 on December 31,2014,and the average market price for 2014 was $30. Rambler reported a net income of $3,650,000 for 2014.Assume the company had a 40 percent income tax rate.

At December 31,2014,the Carboneer Company had 150,000 shares of common stock issued and outstanding.On April 1,2015,an additional 30,000 shares of common stock were issued.Carboneer's net income for the year ended December 31,2015,was $517,500.During 2015,Carboneer declared and paid $300,000 in cash dividends on its nonconvertible preferred stock.The basic earnings per common share,rounded to the nearest penny,for the year ended December 31,2015,should be

In computing earnings per share,convertible preferred stock may increase the number of shares outstanding if it is

Gold Coast Supplies had 80,000 shares of common stock outstanding at January 1.On May 1,Gold Coasts Supplies issued 21,500 shares of common stock.Outstanding all year were 30,000 shares of nonconvertible preferred stock on which a dividend of $3 per share was paid in December.Net income for the year was $300,000.Gold Coast Supplies should report basic earnings per share for the year of

In calculating earning per share,stock options warrants,and rights are

When computing diluted EPS for a company with a complex capital structure,what is the denominator in the computation?

At December 31,2013,Rightoff,Inc.had 600,000 shares of common stock outstanding.On April 1,2014,an additional 180,000 shares of common stock were issued for cash.Rightoff also had $5,000,000 of 8% convertible bonds outstanding at December 31,2013,which are convertible into 150,000 shares of common stock.The bonds are dilutive in the 2014 EPS computation.No bonds were issued or converted into common stock during 2014. -Using the information above,what is the number of shares that should be used in computing diluted earnings per share for 2014?

If convertible bonds are dilutive,the interest expense added back to the numerator in calculating diluted earnings per share is

A company already has calculated its basic earnings per share (EPS).In determining diluted earnings per share,the annual dividend on convertible cumulative preferred stock which is dilutive should be

When computing diluted earnings per share,stock options are

A company with a 40% tax rate had 50,000 shares of common stock and the following three potentially dilutive issues outstanding for the entire year: What is the correct ordering (ranking)of the dilutive issues for determining their inclusion into diluted earnings per share?

Earnings per share disclosures are required only for

The if-converted method of computing EPS data assumes conversion of convertible securities at the

Basic earnings per share represents the amount of earnings attributable to

In determining earnings per share,interest expense,net of applicable income taxes,on convertible debt which is dilutive should be

The Granger Corporation had 200,000 shares of common stock and 10,000 shares of cumulative,$6 preferred stock outstanding during 2014.The preferred stock is convertible at the rate of three shares of common per share of preferred.For 2014,the company had a $60,000 net loss from operations and declared no dividends.Granger should report 2014 diluted loss per share of (rounded to the nearest cent)

In calculating diluted earnings per share,which of the following should not be considered?