What is their primary eps

Assignment Help Finance Basics

Reference no: EM13296899

A firm has Net Income of 200,000 and 50,000 shares of common stock outstanding. However, they have 10,000 shares of Preferred Stock which received $2 per share in dividends. They also had warrants that can be converted into 20,000 shares of common stock for $25. Their current stock price is $30. They also have 600 bonds with a face value of 1,000 and a coupon rate of 6%. These bonds can be converted into15,000 shares of stock. Their marginal tax rate is 40%. What is their Primary EPS?

Reference no: EM13296899

Questions Cloud

Find how long does the lighter skater take to reach the edge : Two ice skaters, with masses of 50.0 kg and 85.0 kg, are at the center of a 60.0 m-diameter circular rink. how long does the lighter skater take to reach the edge

Compute the work done by the force : A constant force of 46.3 N, directed at 28.7o from horizontal, pulls a mass of 14.7 kg horizontally a distance of 3.09 m

What is the tce concentration in ppm if the tank is filled : What is the TCE concentration in ppm if the tank is held at (a) 4 degrees C and (b) 35 degrees C (c) What is the TCE concentration in ppm if the tank is filled with hexane instead of water Consider the temperature dependence of the density of wat..

Review the genetics of self-pollinated species : Review the genetics of self-pollinated species and understand the breeding methods commonly used for self-pollinated crops.

What is their primary eps : They also have 600 bonds with a face value of 1,000 and a coupon rate of 6%. These bonds can be converted into15,000 shares of stock. Their marginal tax rate is 40%. What is their Primary EPS?

What is the value of each warrant : However, with the warrants attached the bonds will pay a 6% annual coupon and can still be issued at the par value of $1,000. There are 30 warrants attached to each bond. What is the value of each warrant?

Determine selling price that yields effective annual return : Five $1,000 bonds having a bond rate of 8% per year payable quarterly are pur chased for $4,940 and kept for 6 years, at which time they are sold. Determine the selling price that yields a 6% effective annual return on the investment.

Explain why the present value of a cash flow stream : Explain why the present value of a cash flow stream, and the asset associated therewith; fluctuate in value with the level of interest rates in the capital markets.

What uniform annual series of cash flows over 12-year period : What uniform annual series of cash flows over a 12-year period is equivalent to an investment of $5,000 at t= 0, followed by receipts of $600 per year for 11 years and a final receipt of $1,600 at t= 12 of the investor's time value of money is 6% ..

User Account

All Pages