Determine basic and diluted earnings per share for stuco

Assignment Help Financial Accounting

Reference no: EM13776432

STUCO. is a calendar-year firm with 160 million common shares outstanding throughout 2013. As part of its executive compensation plan, at January 1, 2012, the company had issued 15 million executive stock options permitting executives to buy 13 million shares of stock for $10.70 each within the next eight years, but not prior to January 1, 2015. The fair value of the options was estimated on the grant date to be $3 per option. The stock options qualify for tax purposes as an incentive plan. The company's net income was $445 million in 2013. Its income tax rate is 35%. The average market price of the stock during 2013 was $13 per share.

Required:

Determine basic and diluted earnings per share (rounded to two decimal places) for STUCO in 2013.

Reference no: EM13776432

Questions Cloud

Priced to yield a negative contribution margin : A sporting goods retailer is running a monthly special, with snow skis and snowboards being priced to yield a negative contribution margin. What would motivate a retailer to do this?

Effect of the change and prepare appropriate journal entry : Davison Inc. reported a deferred tax liability of $24 million for the year ended December 31, 2012, related to a temporary difference of $60 million. The tax rate was 40%. The temporary difference is expected to reverse in 2014 at which time the defe..

Why do students switch languages : Why do students switch languages? What was Amy Tan's book? What was her speech burdened with? What did she say to her mother about the price of furniture?

Prepare a december adjusted trial balance : Prepare in journal form, all end-of-the period adjusting entries and prepare a December adjusted trial balance - prepare a classified balance sheet for the year ended December 31, 2014

Determine basic and diluted earnings per share for stuco : STUCO. is a calendar-year firm with 160 million common shares outstanding throughout 2013. As part of its executive compensation plan, at January 1, 2012, the company had issued 15 million executive stock options permitting executives to buy 13 milli..

Address the cost to the facility in addressing such concerns : As you explain these concerns, include how the regulatory environment in which providers operate at times can hinder the ability for a provider to do what is necessary for patients. Provide an example or scenario illustrating these limitations. Furth..

Act of grouping people from the act of stereotyping : What differentiates the act of grouping people from the act of stereotyping? How can stereotyping effect group relations? Give an example of a stereotype you find in your everyday life.

Compute basic and diluted eps for the year ended : On December 31, 2012, Ball Corp had outstanding 500,000 shares of common stock and 44,500 shares of 8% cumulative preferred stock (par $10). At year-end, there were fully vested incentive stock options outstanding for 32,000 shares of common stock (a..

Challenges facing modern african americans : Consider racial imbalances in education, the economy, family life, housing, criminal justice, health care, and politics. Of these societal challenges facing modern African Americans, which do you think are most difficult to overcome, and why?

User Account

All Pages