Solution-Compute basic earnings per share

Compute basic earnings per share

Assignment Help Accounting Basics

Reference no: EM131108258

1. (EPS with Warrants) Worth Corporation earned $260,000 during a period when it had an average of 100,000 shares of common stock outstanding. The common stock sold at an average market price of $15 per share during the period. Also outstanding were 30,000 warrants that could be exercised to purchase one share of common stock for $10 for each warrant exercised.

(a) Are the warrants dilutive?
(b) Compute basic earnings per share.
(c) Compute diluted earnings per share.

Reference no: EM131108258

Questions Cloud

What would be the effect on prices of treasury securities : In recent years the exchange rate of the $ has been noticeably high against the yen. If for some reason investors around the world now decide that this increase is a temporary phenomena and that the $ will fall relative to the yen in coming months(th..

Growing economy in aftermath of severe recession : We are in the midst of a slow growing economy in the aftermath of a severe recession. During the economic downturn many businesses laid off workers very quickly once they forecast their sales were dropping. what are some of the impediments to hiring ..

Tax cigarettes is considering the introduction : A country that does not tax cigarettes is considering the introduction of a $0.40 per pack tax. The economic advisors to the country estimate the supply and demand curves for cigarettes as: QD = 140,000 - 25,000P; QS = 20,000 + 75,000P, where Q = dai..

What are equilibrium price-quantity and profits for firms : A market is characterized by a demand curve that can be expressed as P = 3000 – 10 Q. Each of the two identical firms currently serving the market has a total cost function of the form C = 250 q. There are no fixed costs. If the 2 duopolists behave a..

Compute basic earnings per share : (EPS with Warrants) Worth Corporation earned $260,000 during a period when it had an average of 100,000 shares of common stock outstanding.

Do men and women write differently : Do men and women write differently? Write in reference to Elaine Showalter's feminist theory. Why do we talk about difference? Define below mentioned differences

Calculate expected market price and variance of market price : A risk-neutral, price-taking firm must set output before it knows the market price. There is a 50 percent chance the market demand curve will be Qd = 10 - 2P and a 50 percent chance it will be Qd = 20 - 2P. The market supply cur–e is estimated to be ..

What is profit-maximizing price to charge for texan car wash : You are the manager of a gas station in a small town, and your goal is to maximize profits. Based on your experience, the elasticity of demand of Texans for a car wash is -2, while that of non-Texans is-1.5. Your marginal cost is $6. Are the conditio..

User Account

All Pages

Compute basic earnings per share

Reference no: EM131108258

Reference no: EM131108258

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT