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Answer 1 : Basic Earning per share
Basic Earning per share = BE/BS
= 25700/ 10600
= 2.42
Working Notes
BE = Income available for common stock holders
Net Income 50000
Less: Intt on Bonds
(100000*6.5%) 6500
-------------
EBT 43500
Less Tax paid @ 30% 13050
----------------
Income after tax 30450
Less Dividend paid to
Prefered stock holder 4750
------------------
Amount Available common 25700
Stock holder -----------
BS = Weighted avaerage no. of common stock
= Share at begining 9600
May, 1 Share issued 1200 weight 1200 *8/12 800
SeP, 30 Share issued 800 Weight 800*3/12 200
------------
Total no. of shares 10600
-----------------
Answer - 2 Dialute Earning Per share
= Net Income/Avg shares+other convertible instuments
= (50000-1950)/15100
= 48050/15100
= 3.18
Working notes
Avg Share = 10600
Prefered stock (1000*2) = 2000
Bonds (100000/1000*25) = 2500
--------------------------
Total shares = 15100
---------------------------
Incremental EPS of Preferred Stock = 4750/2000
= 4750/2000
= 2.38
Incremental EPS of Bonds = interest/ incremental no. of shares due to conversion of bonds
= 6500-1950/2500
= 4550/2500
= 1.82
Answer 3 Incremental Earning per share
Bonds = $ 1.82
Preferred = $ 2.38
Solution
Answer 1 : Basic Earning per share
Basic Earning per share = BE/BS
= 25700/ 10600
= 2.42
Working Notes
BE = Income available for common stock holders
Net Income 50000
Less: Intt on Bonds
(100000*6.5%) 6500
-------------
EBT 43500
Less Tax paid @ 30% 13050
----------------
Income after tax 30450
Less Dividend paid to
Prefered stock holder 4750
------------------
Amount Available common 25700
Stock holder -----------
BS = Weighted avaerage no. of common stock
= Share at begining 9600
May, 1 Share issued 1200 weight 1200 *8/12 800
SeP, 30 Share issued 800 Weight 800*3/12 200
------------
Total no. of shares 10600
-----------------
Answer - 2 Dialute Earning Per share
= Net Income/Avg shares+other convertible instuments
= (50000-1950)/15100
= 48050/15100
= 3.18
Working notes
Avg Share = 10600
Prefered stock (1000*2) = 2000
Bonds (100000/1000*25) = 2500
--------------------------
Total shares = 15100
---------------------------
Incremental EPS of Preferred Stock = 4750/2000
= 4750/2000
= 2.38
Incremental EPS of Bonds = interest/ incremental no. of shares due to conversion of bonds
= 6500-1950/2500
= 4550/2500
= 1.82
Answer 3 Incremental Earning per share
Bonds = $ 1.82
Preferred = $ 2.38

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คำศัพท์ คำพื้นฐานการอ่าน ภาษาอังกฤษ ระดับชั้น ม.1
 

Answer 1 Basic Earning per shareBasic Earning per share = BEBS.pdf

  • 1. Answer 1 : Basic Earning per share Basic Earning per share = BE/BS = 25700/ 10600 = 2.42 Working Notes BE = Income available for common stock holders Net Income 50000 Less: Intt on Bonds (100000*6.5%) 6500 ------------- EBT 43500 Less Tax paid @ 30% 13050 ---------------- Income after tax 30450 Less Dividend paid to Prefered stock holder 4750 ------------------ Amount Available common 25700 Stock holder ----------- BS = Weighted avaerage no. of common stock = Share at begining 9600 May, 1 Share issued 1200 weight 1200 *8/12 800 SeP, 30 Share issued 800 Weight 800*3/12 200 ------------ Total no. of shares 10600 ----------------- Answer - 2 Dialute Earning Per share = Net Income/Avg shares+other convertible instuments = (50000-1950)/15100 = 48050/15100 = 3.18 Working notes Avg Share = 10600 Prefered stock (1000*2) = 2000 Bonds (100000/1000*25) = 2500
  • 2. -------------------------- Total shares = 15100 --------------------------- Incremental EPS of Preferred Stock = 4750/2000 = 4750/2000 = 2.38 Incremental EPS of Bonds = interest/ incremental no. of shares due to conversion of bonds = 6500-1950/2500 = 4550/2500 = 1.82 Answer 3 Incremental Earning per share Bonds = $ 1.82 Preferred = $ 2.38 Solution Answer 1 : Basic Earning per share Basic Earning per share = BE/BS = 25700/ 10600 = 2.42 Working Notes BE = Income available for common stock holders Net Income 50000 Less: Intt on Bonds (100000*6.5%) 6500 ------------- EBT 43500 Less Tax paid @ 30% 13050 ---------------- Income after tax 30450 Less Dividend paid to Prefered stock holder 4750 ------------------ Amount Available common 25700 Stock holder ----------- BS = Weighted avaerage no. of common stock
  • 3. = Share at begining 9600 May, 1 Share issued 1200 weight 1200 *8/12 800 SeP, 30 Share issued 800 Weight 800*3/12 200 ------------ Total no. of shares 10600 ----------------- Answer - 2 Dialute Earning Per share = Net Income/Avg shares+other convertible instuments = (50000-1950)/15100 = 48050/15100 = 3.18 Working notes Avg Share = 10600 Prefered stock (1000*2) = 2000 Bonds (100000/1000*25) = 2500 -------------------------- Total shares = 15100 --------------------------- Incremental EPS of Preferred Stock = 4750/2000 = 4750/2000 = 2.38 Incremental EPS of Bonds = interest/ incremental no. of shares due to conversion of bonds = 6500-1950/2500 = 4550/2500 = 1.82 Answer 3 Incremental Earning per share Bonds = $ 1.82 Preferred = $ 2.38