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- Topic: diluted eps

Author | Topic: diluted eps |
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Claudio@2012-03-06 01:06:00 |
given R.E. of 100,000,
5,000 shares of common with a par value of $20, 1,000 shares of 10% cumul. pref. stock with a par of $100 and a liquidation value of $110. The preferred is 4 years in arrears (no idea how this affects anything) what is Book value per share? (which i assume means diluted eps) - thanks. By the way, the choices are $25, $30, $32, and $33 -- answer is 30 |

applebee@2012-03-12 06:55:00 |
Dividends have to be paid to the pref.s:
5x 10%x 1000x100 = 50,000 ( 5 years-- 4 years in arrear plus current year) After div. paid out, remaining R.E is 50,000, distributed to 5000 shares common stocks, which means $10 per share. $10 ( R.E. available per share) + $20 (par value) = $30 ( book value) Here is just my thought. Please correct me if it is wrong. |

Piuu@2012-05-05 20:10:08 |
How did u get 5 in 5*10%*1000*100. there is no such no mentioned. |

Sandar@2012-05-12 13:40:05 |
Shouldn't it be =retained earning pr share + common stock per share = (1000 shares* 100*0.1/1000)+20=30 |