Question: 1. What effect will the purchase of treasury stock on earning per share?
a. Decrease
b. Increase
c. No effect
d. Increase numerator and decrease denominator
2. When computing diluted earnings per share, convertible preferred stocks are
a. ignored.
b. assumed converted whether they are dilutive or antidilutive.
c. assumed converted only if they are antidilutive.
d. assumed converted only if they are dilutive.
3. Loeb Co. had 600,000 shares of common stock outstanding on January 1, issued 84,000 shares on May 1, purchased 42,000 shares of treasure stock on September 1, and issued 36,000 shares on November 1. The weighted average shares outstanding for the year is
a. 634,000.
b. 648,000.
c. 662,000.
d 676,000.
4. On December 1, 2017, Howell Company issued at 103, two hundred of its 9%, $1,000 bonds. Attached to each bond was one detachable warrant entitling the holder to purchase 10 shares of Howell's stock. On December 1, 2017, the market of the bonds, the stock warrants, was 95, and the market value of each stock purchase warrant was $50. The amount of proceeds from the should be accounted for as the initial carrying value of the bonds would be
a. $193, 640.
b. $195, 700.
c. $200,000.
d. $206,000.