Question 1

What is the meaning of "out-of-the-money warrants"?

Accepted Answer

A)  Warrants are out-of-the-money if the market price of the share exceeds the exercise price.
B)  Warrants are out-of-the-money if the market price of the share is less than the exercise price.
C)  Warrants are out-of-the-money if the market price of the share equals the exercise price.
D)  Warrants are out-of-the-money when the market price means that it will be exercised.E) C) and D)
F) All of the above

Question 2

Use the following information to calculate the "weighted average number of ordinary shares outstanding" (WASO) ?

Accepted Answer

A)  120,000
B)  165,000
C)  185,000
D)  270,000E) C) and D)
F) A) and D)

Question 3

Which statement is correct?

Accepted Answer

A)  When convertible securities are redeemed during the year,the income effect and share effect are pro-rated for the diluted EPS calculation.
B)  When convertible securities are issued during the year,the income effect and share effect are not pro-rated for the diluted EPS calculation.
C)  When convertible securities are issued at the beginning of the year,the income effect and share effect are pro-rated for the diluted EPS calculation.
D)  When the right to convert convertible securities expires during the year,the income effect and share effect are not pro-rated for the diluted EPS calculation.E) A) and C)
F) A) and B)

Question 4

Summer Surprise Ltd.(SSL)was incorporated on January 1,2018.At that time,it issued 210,000 ordinary shares;95,000,$65,2% preferred shares "A";and 85,000,$65,4% preferred shares "B." Net income for the year ended December 31,2018 was $500,000.SSL neither declares nor pays dividends during the year.The series A preferred shares are cumulative and the series B preferred shares are non-cumulative.Series A must be fully paid their current entitlement before any monies are paid to the Series B shareholders.
Required:
Compute basic BPS.

Accepted Answer

Supporting comment-Dividends are neith...

Exam 15: Earnings Per Share

What is the meaning of "out-of-the-money warrants"?

Correct Answer
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Use the following information to calculate the "weighted average number of ordinary shares outstanding" (WASO) ?

Correct Answer
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Which statement is correct?

Correct Answer
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Correct Answer
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Supporting comment-Dividends are neith...
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Exam 15: Earnings Per Share

What is the meaning of "out-of-the-money warrants"?

Correct AnswerverifiedShow Answer

Use the following information to calculate the "weighted average number of ordinary shares outstanding" (WASO) ?

Correct AnswerverifiedShow Answer

Which statement is correct?

Correct AnswerverifiedShow Answer

Correct Answerverified Supporting comment-Dividends are neith...View AnswerShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Supporting comment-Dividends are neith...
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