Ace companys net income for the year 4 million and the

Assignment Help Corporate Finance

Reference no: EM13381539

Ace company's net income for the year $4 million and the number of common shares outstanding is 3 million (there is no change in shares outstanding during the year). Ace has options and warrants outstanding to purchase 1 million common shares at $15 per share.

Required:

a. If the average market value of the common share us $20 year end price is $25, interest rate on borrowing is 6%, and the tax rate is 50%, then compute both basic and diluted EPS.

b. Do the same computations as in a assuming net income for the year is only $3 million, the average market value per common share is $18, and year end price is $20 per share.

Reference no: EM13381539

Questions Cloud

Sunny hotels plc owns a successful chain of hotels the : sunny hotels plc owns a successful chain of hotels. the company is considering diversifying its activities through the

Jason approaches allinsurance for insurance over the house : jason approaches allinsurance for insurance over the house he is renting. he lives in the house but his partner is

The budget committee for planning upcs expansion project : the budget committee for planning upcs expansion project has been deliberating on the viability of the project for

The firm manufactures a global positioning system gps that : the firm manufactures a global positioning system gps that sells for 2000 with cost of goods sold hardware 30 and

Ace companys net income for the year 4 million and the : ace companys net income for the year 4 million and the number of common shares outstanding is 3 million there is no

Campbell soup companyrequireda estimate the amount of : campbell soup companyrequireda. estimate the amount of depreciation expense reported on campbells tax returns for each

Your supervisor asks you to analyze the potential purchase : your supervisor asks you to analyze the potential purchase of drew company by your firm pierson inc. you are provided

Spellman company acquires 90 of moore company in a business : spellman company acquires 90 of moore company in a business combination. the total consideration is agreed upon but the

Exotic cuisines employee stock optionsas a newly minted mba : exotic cuisines employee stock optionsas a newly minted mba youve taken a management position with exotic cuisines inc.

User Account

All Pages