Information from the financial statements of Topps Fambricators, Inc., Included the following : Common shares 100,000...

Information from the financial statements of Topps Fambricators, Inc., Included the following :

Common shares 100,000

Convertible preferred shares $100 par, 5% (convertible into 36,000 shares of common) 12,000

10% convertible bonds (convertible into 25,000 shares of common) $1,000,000

Stock options for 120,000 shares of common stock (option price of $20 per share; market price of $25 per share)

Topps's net income for the year ended December 31,2018, is $680,000. The income tax rate is 40%.

Topps paid dividends of $5 per share on its preferred stock during 2018.

Compute basic and diluted earnings per share for the year ended December 31, 2018.

(Basic earnings per share is $6.20 and diluted earnings per share is $4.00. Could you please explain me why diluted EPS is $4.00). Thank you

Solutions

Expert Solution

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Information from the financial statements of Jay Industries included the following at December 31, 2021: Common...

Information from the financial statements of Jay Industries included the following at December 31, 2021: Common shares outstanding throughout the year 100 million Convertible preferred shares (convertible into 36 million shares of common) 60 million Convertible 8% bonds (convertible into 14.5 million shares of common) $ 1,600 million Jays’s net income for the year ended December 31, 2021, is $740 million. The income tax rate is 25%. Jays paid dividends of $3 per share on its preferred stock during 2021....

Information from the financial statements of Ames Fabricators, Inc., included the following: On October 15,...

Information from the financial statements of Ames Fabricators, Inc., included the following: On October 15, 2020, the board of directors of Ensor Materials Corporation approved a stock option plan for key executives. On January 1, 2021, 23 million stock options were granted, exercisable for 23 million shares of Ensor's $1 par common stock. The options are exercisable between January 1, 2024, and December 31, 2026, at 90% of the quoted market price on January 1, 2021, which was $20....

Information from the financial statements of Henderson-Niles Industries included the following at December 31, 2021: Common...

Information from the financial statements of Henderson-Niles Industries included the following at December 31, 2021: Common shares outstanding throughout the year 100 million Convertible preferred shares (convertible into 30 million shares of common) 65 million Convertible 8% bonds (convertible into 21.5 million shares of common) $ 2,600 million Henderson-Niles’s net income for the year ended December 31, 2021, is $920 million. The income tax rate is 25%. Henderson-Niles paid dividends of $3 per share on its preferred stock during 2021....

Information from the financial statements of Henderson-Niles Industries included the following at December 31, 2021: Common...

Information from the financial statements of Henderson-Niles Industries included the following at December 31, 2021: Common shares outstanding throughout the year 100 million Convertible preferred shares (convertible into 20 million shares of common) 70 million Convertible 8% bonds (convertible into 19.0 million shares of common) $ 2,700 million Henderson-Niles’s net income for the year ended December 31, 2021, is $940 million. The income tax rate is 25%. Henderson-Niles paid dividends of $2 per share on its preferred stock during 2021....

Information from the financial statements of Henderson-Niles Industries included the following at December 31, 2018: Common...

Information from the financial statements of Henderson-Niles Industries included the following at December 31, 2018: Common shares outstanding throughout the year 100 million Convertible preferred shares (convertible into 20 million shares of common) 60 million Convertible 10% bonds (convertible into 19.5 million shares of common) $ 2,500 million Henderson-Niles’s net income for the year ended December 31, 2018, is $900 million. The income tax rate is 40%. Henderson-Niles paid dividends of $2 per share on its preferred stock during 2018....

Information from the financial statements of Henderson-Niles Industries included the following at December 31, 2021: Common...

Information from the financial statements of Henderson-Niles Industries included the following at December 31, 2021: Common shares outstanding throughout the year 100 million Convertible preferred shares (convertible into 36 million shares of common) 60 million Convertible 8% bonds (convertible into 14.5 million shares of common) $ 1,600 million Henderson-Niles’s net income for the year ended December 31, 2021, is $740 million. The income tax rate is 25%. Henderson-Niles paid dividends of $3 per share on its preferred stock during 2021....

Information from the financial statements of Henderson-Niles Industries included the following at December 31, 2018: Common...

Information from the financial statements of Henderson-Niles Industries included the following at December 31, 2018: Common shares outstanding throughout the year 100 million Convertible preferred shares (convertible into 40 million shares of common) 70 million Convertible 10% bonds (convertible into 14.5 million shares of common) $ 1,100 million Henderson-Niles’s net income for the year ended December 31, 2018, is $620 million. The income tax rate is 40%. Henderson-Niles paid dividends of $2 per share on its preferred stock during 2018....

Information Use the following information about Rex Inc. for problems 1-6. Common stock: 100,000 shares outstanding....

Information Use the following information about Rex Inc. for problems 1-6. Common stock: 100,000 shares outstanding. $50 per share, beta=1.5 Bonds: 2,000 bonds outstanding, $1,000 face value each, 4% coupon paid semiannually, 21 years to maturity, market price of $995 per bond. Market risk premium=5%, yield on 30 day Treasury Bill= 1%, effective tax rate = 21% A) What is Rex Inc's Weight of Debt? B) What is Rex Inc's Weight of Equity? C) What is Rex Inc's Before Tax...

The following information is taken from the financial statements of Knights, Inc. From the balance sheet:...

The following information is taken from the financial statements of Knights, Inc. From the balance sheet: Cash $ 30,000 Accounts receivable 150,000 Inventory 200,000 Plant assets (net of accumulated depreciation) 500,000 Current liabilities 150,000 Total stockholders’ equity 300,000 Total assets 1,000,000 From the income statement: Net sales $1,500,000 Cost of goods sold 1,080,000 Operating expenses 315,000 Interest expense 84,000 Income tax expense 6,000 Net income 15,000 From the statement of cash flows: Net cash provided by operating activities (including interest...

Selected information from Rockway, Inc.’s U.S. GAAP financial statements for the year ended December 31, included...

Selected information from Rockway, Inc.’s U.S. GAAP financial statements for the year ended December 31, included the following (in $): 2004 2005 Sales 17,000,000 21,000,000 Cost of Goods Sold 11,000,000 15,000,000 Interest Paid 800,000 1,000,000 Current Income Taxes Paid 700,000 1,000,000 Accounts Receivable 3,000,000 2,500,000 Inventory 2,400,000 3,000,000 Property, Plant & Equip 2,000,000 16,000,000 Accounts Payable 1,000,000 1,400,000 Long-term Debt 8,000,000 9,000,000 Common Stock 4,000,000 5,000,000 Cash provided or used by operating activities (CFO) in the year 2005 was closest...

Subjects