1: The following data is for Dunbar Company for 2016. Net Income (30% tax rate)...
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Accounting
1: The following data is for Dunbar Company for 2016.
Net Income (30% tax rate) $3,200,000
Common Shares Change Cumulative
Jan. 1, 2016, Beginning number 1,000,000 shares
Mar. 1, 2016, Purchase of treasury shares (60,000) 940,000
June 1, 2016, Stock split 2-1 940,000 1,880,000
Nov. 1, 2016, Issuance of shares 120,000 2,000,000 shares
9% Cumulative Convertible Preferred Stock: $1,000,000 dividend rate = 9%*$1,000,000 = $90,000
Sold at par, convertible into 200,000 shares of common (adjusted for split).
Stock Options: 60,000 options granted in 2010.
Exercisable (1 for 1) at an option price of $25 per common share. Average market price in 2016, $30 (adjusted for split).
Required: a) Determine BEPS b) Determine DEPS
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