Question 4.18: A Diluted EPS Calculation Using the Treasury Stock Method fo...

A Diluted EPS Calculation Using the Treasury Stock Method for Options

Hihotech Company reported net income of $2.3 million for the year ended 30 June 2005 and had an average of 800,000 common shares outstanding. The company has outstanding 30,000 options with an exercise price of$35 and no other potentially dilutive securities. Over the year, the company’s market price has averaged $55 per share. Calculate the company’s basic and diluted EPS. The "Step-by-Step Explanation" refers to a detailed and sequential breakdown of the solution or reasoning behind the answer. This comprehensive explanation walks through each step of the answer, offering you clarity and understanding. Our explanations are based on the best information we have, but they may not always be right or fit every situation. The blue check mark means that this solution has been answered and checked by an expert. This guarantees that the final answer is accurate. Learn more on how we answer questions. Already have an account? Related Answered Questions Question: 4.22 Other Comprehensive Income in Analysis An analyst is looking at two comparable companies. Company A has a lower price/ earnings (P/E) ratio than Company B, and the conclusion that has been ... Verified Answer: As shown by the following table, part of the expla... Question: 4.21 Other Comprehensive Income Assume a company’s beginning shareholders’ equity is €200 million, its net income for the year is €20 million, its cash dividends for the year are €3 million, and there was ... Verified Answer: Solution to 1. C is correct. If the company’s actu... Question: 4.20 An Antidilutive Security For the year ended 31 December 2006, Dim-Cool Utility Company had net income of$1,750,000. The company had an average of 500,000 ...

If the 20,000 shares of convertible preferred had ...
Question: 4.19

Diluted EPS for Options under IFRS Assuming the same facts as in Example 4-18, calculate the weighted average number of shares outstanding for diluted EPS under IFRS. ...

If the options had been converted, the company wou...
Question: 4.17

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If the 20,000 shares of convertible preferred had ...
Question: 4.8