What is ajax diluted earnings per share

Assignment Help Accounting Basics
Reference no: EM132683961

Problem 1: On January 1, 2027, Ajax Corporation had 10 million shares of common stock, issued and outstanding. On October 1, 2027 Ajax issued an additional 1 million shares of common stock. Ajax also has $40 million face value, 6.25% convertible bonds outstanding for the entire year. The bonds are convertible into 2 million common shares. Ajax has a tax rate of 40% and net income of $14 million in 2027. What is Ajax's diluted earnings per share for 2027?

Option 1: $1.37

Option 2: $1.27

Option 3: $1.35

Option 4: $1.22

Reference no: EM132683961

Questions Cloud

Journalize the adjusting entry to adjust the unearned fees : Journalize the adjusting entry to adjust the unearned fees account. The balance in the unearned fees account, before adjustment at the end of the year
Explain limited vs personal liability : Explain limited vs. personal liability, how the business will be controlled, how members might transfer their interests, and how they will raise money
Compose paragraph of major section of your capstone project : Writing a good Capstone Project requires that you receive and incorporate feedback from your Instructor. Your writing may require several rounds of editing.
Determine the cash cycle for a company : Determine the cash cycle for a company with inventory turnover of 9 times per year, receivables turnover of 10 times per year, and an average days of revenue in
What is ajax diluted earnings per share : On January 1, 2027, Ajax has a tax rate of 40% and net income of $14 million in 2027. What is Ajax's diluted earnings per share for 2027?
What is the effective annual interest rate : In exchange for a $410 million fixed commitment line of credit, your firm has agreed to do the following:
Find market price per share-frederic ltd : Frederic's Ltd in Vancouver has 47,500 shares of stock outstanding with a par value of $1.00 per share and a market price of $18 a share. The firm just announce
Journalize the adjusting entry required amount of insurance : Journalize the adjusting entry required under each of the alternatives for determining the amount of the adjustment amount of insurance expired during the year
What will your homemade dividend be in two years : You own 2,200 shares of stock in Armstrong Corporation. You will receive a $1.80 per share dividend in one year. In two years, Armstrong will pay a liquidating

Reviews

Write a Review

Accounting Basics Questions & Answers

  What is the amount of realized gain or loss on the sale

Brantley owns an automobile for personal use. The adjusted basis is $16,750, What is the amount of realized gain or loss on the sale

  Case for alienation of affections

"I'm going to get serious now. I'm going to kill you in the next few months." The man keeps up these tormenting calls until you're a wreck with fear, although he never does actually attack you. Which of the following statements is correct?

  A household employer a covered employer under futa

1. What two alternative tests are applied to a business in order to judge whether it is an ''employer'' and therefore subject to the FUTA tax?

  Analysis of the company value proposition

Provide a high-level analysis of the company's business strategy and operating performance. Be sure to complete the following.

  What is the operating income

What is the operating income for GTC in a month with 88 jobs? Enter a net loss as a negative amount. What is operating income for GTC in a month with 95 jobs

  Calculate the average issue price per preferred share

On November 19 the company issued 3,400 preferred shares in exchange for land with a fair market value of $52,480. Calculate the average issue price

  Determine the activity cost of instruction per student

Determine the activity cost of instruction per student in both the introductory and the graduate financial accounting courses

  Conyers water inc bottles and distributes spring water on

conyers water inc. bottles and distributes spring water. on july 5 of the current year conyers water inc. reacquired

  What is the bond expected yield

The market yield to maturity on a risky bond is currently listed at 14.50 percent. What is the bond's expected yield

  Which of the following should be deducted from net income

1.which of the following should be deducted from net income in calculating net cash flow from operating activities

  Harmon household products inc manufactures a number of

harmon household products inc. manufactures a number of consumer items for general household use. one of these products

  You are buying your first house for 220000 and are paying

you are buying your first house for 220000 and are paying 30000 as a down payment. you have arranged to finance the

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!

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