单选题
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BWT, Inc. shows the following data in its financial statements at the end of the year. Assume all securities were outstanding at the beginning of the year:
6.125% convertible bonds, convertible into 33 shares of common stock. Issue price $1000100 bonds outstanding.
6.25% convertible preferred stock, $100 par, 2315 shares outstanding. Convertible into 3.3 shares of common stock, Issue price $100. 8% convertible preferred stock, $100 par, 2572 shares outstanding. Convertible into 5 common shares, Issue price $ 80.
9986 warrants are outstanding with an exercise price of $ 38. Each warrant is convertible into 1 share of common. Average market price of common is $ 52.00 per share. Common shares outstanding at the beginning of the year were 40045.
Net income for the period was $ 200000 while the tax rate was 40%.
单选题 What were the preferred dividends paid this whole year?
【正确答案】 A
【答案解析】0625×100×2315 = 14469 0.08×100×2572 = 20576 14469+20576=35045
单选题 What was the after-tax interest charge?
【正确答案】 C
【答案解析】06125×1000×100×(1-0.4) =3675
单选题 How many new shares had to be issued to facilitate warrant conversion?
【正确答案】 C
【答案解析】9986×$ 38 = $ 379468 $ 379468/$ 52 = 7297 common shares 9986 -7297 = 2689 new common shares
单选题 What were the Basic and Diluted EPS for the year? Basic EPS Diluted EPS ①A. $4.12 $2.95 ②B. $4.12 $3.06 ③C. $3.97 $3.06
【正确答案】 B
【答案解析】Basic EPS = Net income preferred dividends/Wt Average shares of common = ($ 200000 $ 35045)/40045 = 164955/40405 = $ 4.12 Diluted EPS : (100 bonds)(33 common shares/bond) =3300 common shares (2315 preferred shares) (3.3) = 7640 (2572 preferred shares) (5) = 12860 7640 + 12860 = 20500 common shares from preferred [($200000- $35045 ) + $35045 + $ 3675 ] / (40045 + 3300 + 20500 + 2689) =$203675/66534 shares = $3.06