A company has basic EPS of $29 per share. If the tax rate is 30%, which...

A company has basic EPS of $29 per share. If the tax rate is 30%, which of the following securities would be dilutive?

Cumulative 8%, $50 par preferred stock
Ten (10%) percent convertible bonds, with each $1,000 bond convertible into 20 shares of common stock.
Seven (7%) percent convertible bonds, with each $1,000 bond convertible into 40 shares of common stock.
Six (6%) percent,$100 par cumulative convertible preferred stock with each preferred share convertible into 4 shares of common stock.

Expert Solution

ekkarill92 answered 10 months ago

A firm has basic earnings per share of $1.90. If the tax rate is 30%, which...

A firm has basic earnings per share of $1.90. If the tax rate is 30%, which of the following securities would be dilutive? (Circle the best answer.) a. Convertible 5% bonds, issued at par, with each $1,000 bond convertible into 20 shares of common stock. b. Convertible 6% bonds, issued at par, with each $1,000 bond convertible into 20 shares of common stock. c. Cumulative convertible 4%, $100 par, preferred stock, issued at par, with each preferred share convertible into...

A company has an EPS of $2.40, a book value per share of $24.24,and a...

A company has an EPS of $2.40, a book value per share of $24.24, and a market/book ratio of 2.1×. What is its P/E ratio? Do not round intermediate calculations. Round your answer to two decimal places.

A company has an EPS of $2.40, a book value per share of $26.40, and a...

A company has an EPS of $2.40, a book value per share of $26.40, and a market/book ratio of 1.3×. What is its P/E ratio? Do not round intermediate calculations. Round your answer to two decimal places. _____ A firm has a profit margin of 5.5% and an equity multiplier of 1.6. Its sales are $260 million, and it has total assets of $78 million. What is its ROE? Do not round intermediate calculations. Round your answer to two decimal...

Consider a company that has a tax rate of 29 percent. The company has an asset...

Consider a company that has a tax rate of 29 percent. The company has an asset classified as a 3-year asset for tax purposes yet has a useful life of 5 years. If the asset has an initial cost of $40,744, what is the depreciation tax shield for the second year of the asset’s useful life? Report your answer to the nearest whole dollar (e.g., 123)

At 31 December 2021 Wyndhams calculated its basic earnings per share as 30 pence per share, based on earnings of £900,000 and 3 million £1 ordinary shares. It has a tax rate of 25%.

At 31 December 2021 Wyndhams calculated its basic earnings per share as 30 pence per share, based on earnings of £900,000 and 3 million £1 ordinary shares. It has a tax rate of 25%. In addition to the ordinary shares, Wyndham has £3m of 4% convertible loan stock. This is convertible any time from 1 January 2021 – 31 December 2022 at a rate of 1 ordinary share for each £5 of loan stock. None had been converted by the...

A company has an EPS of US$12 per share. It pays out its entire earnings as...

A company has an EPS of US$12 per share. It pays out its entire earnings as dividend. It has a growth rate of zero and a required return on equity of 8 percent per annum. Assuming all cashflows are perpetuities, what will be the price of the company’s stock? Select one: a. USD83.43 b. USD155.00 c. USD85.00 d. USD150.00

1)JSW Inc. reported 2015 basic EPS of $7.50 compared to 2014 basic EPS of $10.00. Which...

1)JSW Inc. reported 2015 basic EPS of $7.50 compared to 2014 basic EPS of $10.00. Which of the following activities could most plausibly and directly contribute to the changes observed in JSW’s basic EPS from 2014 to 2015? A Smaller issuance of preferred dividends in 2015 than in 2014. B Acquisition of a trademark in 2015. C Larger declines in the fair value of available for sale securities in 2015 than in 2014. D Large numbers of employee options were...

explain what earnings per share (EPS). How is EPS calculated and why it is important for...

explain what earnings per share (EPS). How is EPS calculated and why it is important for investors to gauge the value of a share?

EPS(1) = $6 Dividends per share (1) =0 Book Value per share (0) =$12 Company XYZ...

EPS(1) = $6 Dividends per share (1) =0 Book Value per share (0) =$12 Company XYZ does not plan to pay any dividends in years 1, 2 ,or 3. It will set dividends equal to its earnings. Assume that the ROE will stay constant over time. The opportunity cost of capital is 20%. How much is Company ABC worth per share?

Thomson Trucking has $15 billion in assets, and its tax rate is 30%. Its basic earning...

Thomson Trucking has $15 billion in assets, and its tax rate is 30%. Its basic earning power (BEP) ratio is 11%, and its return on assets (ROA) is 7%. What is its times-interest-earned (TIE) ratio? Round your answer to two decimal places.

Question