The writer is very fast, professional and responded to the review request fast also. Thank you.
As an analyst you have gathered the following information about a company for the year ended December 31, 2009: Net income was $10.5 million. Stockholders’ equity at December 31, 2009 was $100 million. Common stock dividends of $3.5 million were paid. 20 million shares of common stock were outstanding on January 1,2009. The company issued 6 million new shares of common stock April 1, 2009. Outstanding preferred shares: 5 million shares, each convertible into 1.5 common shares par value $1 per share; liquidating value $5 per share Annual dividend $4 per share.Required:a. Compute the company’s basic EPS for 2009.b. Compute the company’s diluted EPS for 2009.c. Compute the company’s book value per share at December 31, 2009.d. Compute the company’s book value per share at December 31, 2009 assuming conversion of the preferred shares into common shares.e. Explain why the diluted calculations (part b and d) provide pre-share amounts that are more suitable for valuation than the amounts calculated in parts a and c. (Please show all supported calculation to the answer)
Show more
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more