Reference no: EM131781499
Part 1: Eldora Corporation's stockholders' equity consists of 20,000 shares of $10 par value, 7% preferred and 30,000 shares of $100 par value common and retained earnings $630,000.
Required: Assuming that the company has net income of $366,000, all of which is to be paid out in dividends, and that preferred dividends were not paid during the current year or the past year, state how much each class of stock should receive under each of the following conditions.
a) The preferred stock is cumulative and fully participating.
b) The preferred stock is noncumulative and nonparticipating.
c) The preferred stock is noncumulative and partially participating up to 4%.
Part 3: Tac Corporation issued 10-year, $5,000,000 par, 7% callable convertible subordinated debentures on January 2, 20X7. The bonds have a par value of $1,000, with interest payable annually, The current conversion ratio is 14:1 (14 shares of common for each $1,000 face value bond)`, and in 2 years it will increase to 18:1. At the date of issue, the bonds were sold at face value. Coburn's effective tax was 35%. Net income in 20X7 was $9,500,000, and the company had 2,000,000 shares outstanding during the entire year.
Required: a) Compute both basic and diluted earnings per share for 20X7.
b) Discuss how the schedule would differ if the security was convertible cumulative 7% preferred stock $1,000 par $5,000,000 with 14:1 conversion ratio. Assume no dividends were declared during the year.
|
Determine tonya adjusted gross income for the current year
: For the current year, Tonya had the following items: Salary $45,000. Determine Tonya's adjusted gross income for the current year
|
|
Predict the life spans for people born in given time period
: Life span. we used data from 1920 to 2020 and found that the life span in the United States depended on the year of birth according.
|
|
Probability of successful collection from the customer
: Consider the case of the Cast Iron Company. On each nondelinquent sale, Cast Iron receives revenues with a present value of $1,230 and incurs.
|
|
Discuss a single product and uses a standard cost system
: Madden Manufacturing, Inc., manufactures a single product and uses a standard cost system
|
|
Discuss how schedule would differ if security convertible
: Discuss how the schedule would differ if the security was convertible cumulative 7% preferred stock $1,000 par $5,000,000
|
|
How much gain or loss should foster recognize
: Foster reacquired the bonds for retirement when they were selling at 102 on the open market. How much gain or loss should Foster recognize on the retirement
|
|
How proposed trump tax cuts will affect
: Discuss the ways in which How Proposed Trump Tax Cuts Will Affect a Trump presidency might have an effect on a firm whose headquarters are in New York.
|
|
What amount of depreciation needs to be recaptured
: Wade purchased a factory building on February 29, 1976,for $375,000. What amount of depreciation needs to be recaptured by Wade estate and what amount by John
|
|
Calculating debt ratio
: (Calculating debt ratio) Fast Solutions, Inc. has the following financial structure:
|