User Account

All Pages

Calculate the weighted-average number of ordinary shares

Assignment Help Accounting Basics
Reference no: EM132885117

Question - On 1 January 2020, Salt Limited had 1,200,000 ordinary shares outstanding.

It also had 100,000 shares of 9%, $10 par, non-cumulative preference shares outstanding for the whole year of 2020. Salt Limited declared and paid preference share dividend in 2020.

During 2020, the company had the following transactions:

1. On 1 February 2020 the company issued 150,000 new shares for cash.

2. On 1 October 2020 the company purchased 600,000 of its own outstanding shares. Net income for 2020 was $340,000.

Required -

a. Calculate the weighted-average number of ordinary shares outstanding in 2020.

b. Calculate the basic earnings per share for 2020 (rounded to two decimals).

c. As at 31 December 2020, Salt Limited has 1,000,000 share options outstanding. Each option can be exercised for one ordinary share at an exercise price of $15. The average market price for Salt Limited ordinary shares in 2020 is $50 per share. Calculate the diluted earnings per share for 2020 (rounded to two decimals).

Reference no: EM132885117

Questions Cloud

Calculate annual lease payment that HAP Limited would charge : On 1 January 2020 the fair value of the truck is $600,000, and the cost to HAP Limited is $530,000. Calculate annual lease payment that HAP Limited would charge
Calculate partnership basis in the land at february amounts : Calculate the partnership's basis in the land at February 1, 2020 amounts. Land with $100,000 fair market value and $80,000 basis.
Selecting an im training program : What are some points that should be taken into consideration when selecting an IM training program?
Create better learning opportunities for all students : A description of how technology can be used to create better learning opportunities for all students.
Calculate the weighted-average number of ordinary shares : On 1 February 2020 the company issued 150,000 new shares for cash. Calculate the weighted-average number of ordinary shares
What the barriers to needs analysis are in organization : Contact the most senior person responsible for training and development at two different organizations and arrange for a brief interview to discuss needs analys
Prepare the january journal entry harbor record at inception : Harbor (lessee) signs a five-year lease for equipment, Prepare the January 1 journal entry Harbor records at inception of the lease for any asset or liability.
What are you passionate about : What motivates you? What are you passionate about? What makes you unique?
Encrypt data in the face of law enforcement efforts : Computer forensics is the discovery process necessary to gather data from an electronic device. Encryption has become so strong that it is virtually impossible

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.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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