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NEW QUESTION: 1
The following data pertains to the Sapphire Company:
Net income equals $15,000
*
5,000 shares of common stock issued on January 1st
*
10 percent stock dividend issued on June 1st
*
1000 shares of common stock were repurchased on July 1st
*
1000 shares of 10 percent, par $100 preferred stock each convertible into 8 shares of common
*
were outstanding the whole year.
What is the company's diluted earnings per share (EPS)?
A. $1.00.
B. $1.20.
C. $1.15.
Answer: A
Explanation:
Number of average common shares:
1 /1 5,500 shares issued (includes 10% stock dividend on 6/1) x 12 = 66,000 7/1 1,000 shares repurchased x6 months = -6,000 = 60,000 60,000 shares/12 months = 5,000 average shares Preferred dividends = ($10)($1000) = $10,000 Number of shares from the conversion of the preferred shares =
(1000 preferred shares)(8 shares of common/share of preferred) = 8000 common Diluted EPS =
[$15,000(NI) - $10,000(pfd) + $10,000(pfd)]/5000(common shares) + 8000(shares from the conv.
pfd.shares) = $15,000/13,000 shares = $1.15/share
This number needs to be compared to basic EPS to see if the preferred shares are antidilutive.
Basic EPS = [$15,000(NI) - $10,000(preferred dividends)]/5,000 shares = $5,000/5,000 shares = $1/share
Since the EPS after the conversion of the preferred shares is greater than before the conversion the preferred shares are antidilutive and they should not be treated as common in computing diluted EPS.
Therefore diluted EPS is the same as basic EPS or $1/share.

NEW QUESTION: 2

A. Option D
B. Option A
C. Option B
D. Option C
Answer: D

NEW QUESTION: 3
You want to calculate revenues as a product of the unit sold and price for unit and save the results in database. How can you achieve this?
Please choose the correct answer.
Response:
A. Use the worksheet logic
B. Use business rules
C. Use the logic script
D. Use the dimension member formulas
Answer: C

NEW QUESTION: 4
Mark works as a Network Administrator for Technet Inc. The company has a Windows 2003 domainbased network. The network has a file server that uses a RAID-5 volume. The RAID-5 volume is configured with five hard disk drives. Over the weekend, a drive in the RAID-5 volume fails. What will Mark do to restore the RAID-5 volume?
A. Use Disk Management, select the failed drive, and then regenerate the volume.
B. Use FDISK to delete the RAID-5 volume, and then restore data from the tape backup.
C. Replace the failed drive with a new one, use FDISK, select a new area of free space, and then regenerate the volume.
D. Replace the failed drive with a new one, use Disk Management, select a new area of free space, and then regenerate the volume.
Answer: D