2. DJ Co. is a calendar-year firm with 120 million common shares outstanding throughout 2013. As...

DJ Co. is a calendar-year firm with 120 million common shares outstanding throughout 2013. As part of its executive compensation plan, at January 1, 2012, the company had issued 12 million executive stock options permitting executives to buy 12 million shares of stock for $10 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 $480 million in 2013. Its income tax rate is 40%. The average market price of the stock during 2013 was $12 per share.

Required:

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

Solutions

Expert Solution

2. DJ Co. is a calendar-year firm with 120 million common shares outstanding throughout 2013. As part of its executive compensation plan, at January 1, 2012,

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

JD Co. is a calendar-year firm with 400 million ordinary shares outstanding throughout 20x4. As part...

JD Co. is a calendar-year firm with 400 million ordinary shares outstanding throughout 20x4. As part of its executive compensation plan, at January 1, 20x3, the company had issued 40 million executive share options permitting executives to buy 40 million ordinary shares for $10 per share within the next eight years, but not prior to January 1, 20x6. The fair value of the options was estimated on the grant date to be $3 per option. At January 1, 20x4, convertible...

Witter House is a calendar-year firm with 310 million common shares outstanding throughout 2018 and 2019....

Witter House is a calendar-year firm with 310 million common shares outstanding throughout 2018 and 2019. As part of its executive compensation plan, at January 1, 2017, the company had issued 35 million executive stock options permitting executives to buy 35 million shares of stock for $12 within the next eight years, but not prior to January 1, 2020. The fair value of the options was estimated on the grant date to be $3 per option. In 2018, Witter House...

Witter House is a calendar-year firm with 370 million common shares outstanding throughout 2018 and 2019....

Witter House is a calendar-year firm with 370 million common shares outstanding throughout 2018 and 2019. As part of its executive compensation plan, at January 1, 2017, the company had issued 30 million executive stock options permitting executives to buy 30 million shares of stock for $15 within the next eight years, but not prior to January 1, 2020. The fair value of the options was estimated on the grant date to be $2 per option. In 2018, Witter House...

q. 28 Witter House is a calendar-year firm with 370 million common shares outstanding throughout 2018...

q. 28 Witter House is a calendar-year firm with 370 million common shares outstanding throughout 2018 and 2019. As part of its executive compensation plan, at January 1, 2017, the company had issued 30 million executive stock options permitting executives to buy 30 million shares of stock for $15 within the next eight years, but not prior to January 1, 2020. The fair value of the options was estimated on the grant date to be $2 per option. In 2018,...

q.28 Witter House is a calendar-year firm with 370 million common shares outstanding throughout 2018 and...

q.28 Witter House is a calendar-year firm with 370 million common shares outstanding throughout 2018 and 2019. As part of its executive compensation plan, at January 1, 2017, the company had issued 30 million executive stock options permitting executives to buy 30 million shares of stock for $15 within the next eight years, but not prior to January 1, 2020. The fair value of the options was estimated on the grant date to be $2 per option. In 2018, Witter...

PLEASE DO ASAP Witter House is a calendar-year firm with 320 million common shares outstanding throughout...

PLEASE DO ASAP Witter House is a calendar-year firm with 320 million common shares outstanding throughout 2018 and 2019. As part of its executive compensation plan, at January 1, 2017, the company had issued 40 million executive stock options permitting executives to buy 40 million shares of stock for $14 within the next eight years, but not prior to January 1, 2020. The fair value of the options was estimated on the grant date to be $3 per option. In...

Witter House is a calendar-year firm with 410 million commonshares outstanding throughout 2018 and 2019....

Witter House is a calendar-year firm with 410 million common shares outstanding throughout 2018 and 2019. As part of its executive compensation plan, at January 1, 2017, the company had issued 50 million executive stock options permitting executives to buy 50 million shares of stock for $15 within the next eight years, but not prior to January 1, 2020. The fair value of the options was estimated on the grant date to be $3 per option.In 2018, Witter House began...

Ignatius Corporation had 14 million shares of common stock outstanding during the current calendar year. It...

Ignatius Corporation had 14 million shares of common stock outstanding during the current calendar year. It issued 23,000, $1,000, convertible bonds on January 1. Each bond is convertible into 50 shares of common stock. The bonds were issued at face amount and pay interest semiannually at an annual rate of 11%. On June 30, Ignatius issued 230,000 shares of $100 par 6% cumulative preferred stock. Dividends are declared and paid quarterly. Ignatius has an effective tax rate of 40%. Ignatius...

Sora Industries has 6060 million outstanding shares, $ 120$120 million in debt, $ 40$40 million in...

Sora Industries has 6060 million outstanding shares, $ 120$120 million in debt, $ 40$40 million in cash, and the following projected free cash flow for the next four years: Year 0 1 2 3 4 Earnings and FCF Forecast ($ million) 1 Sales 433.0 468.0 516.0 547.0 574.3 2 Growth vs. Prior Year 8.1% 10.3% 6.0% 5.0% 3 Cost of Goods Sold (313.6) (345.7) (366.5) (384.8) 4 Gross Profit 154.4 170.3 180.5 189.5 5 Selling, General, & Admin. (93.6) (103.2)...

2) Lebron Co. acquired the entire outstanding shares of common stock of Cavaliers Co. On the...

2) Lebron Co. acquired the entire outstanding shares of common stock of Cavaliers Co. On the acquisition date the total fair value of net identifiable assets acquired (i.e., far value of identifiable assets acquired and liabilities assumed) was greater than the consideration transferred for the shares. Research and cite a specific paragraph in the Accounting Standard Codification that can help the company to determine how this difference should be recognized in the consolidated financial statements. Unless specifically requested, your response...

Subjects