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NEW QUESTION: 1
Sulfidation of iron-based alloys usually begins at about:
A. 250 oF.
B. 1100 oF.
C. 150 oF.
D. 500 oF.
Answer: D
NEW QUESTION: 2
A firm issued 2 million warrants with an exercise price of 102 on June 15, 1996. The maximum price of the stock in 1996 was 129, the average price was 110. The stock closed out the year at 99. How many additional shares must be used in the computation of Diluted EPS as a result of these warrants?
A. 111,782
B. 78,788
C. zero
D. 145,454
Answer: B
Explanation:
Explanation/Reference:
Explanation:
The conversion assumptions for options and warrants are as follows:
1. They are assumed to be exercised at the beginning of the period or at the time of issuance, whichever is later.
2. They enter into the Diluted EPS calculations only if the average stock price during the period exceeds the exercise price. With the Treasury stock method, the total shares repurchased using exercise proceeds
= 2*102/110 = 1,854,546. Thus, additional shares issued = 2 million - 1,854,546 = 145,454. These are outstanding for 6.5 months. Therefore, additional weighted shares = 145,454*6.5/12 = 78,788.
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