Problem 19-14 (amounts in millions, except per share amounts) Basic EPS net preferred income dividends $1,476 $60* $1,416 – = = ——————————————————————————————————————— ——— $2.27 600 + 72 (4/12) 624 shares new at Jan. 1 shares Diluted EPS net preferred after-tax income dividends Interest savings $1,476 $60* + $160 - 40% ($160) $1,512 – = = ——————————————————————————————————————— ——— $2.09 600 + 72 (4/12) + (60 40)** + 80 724 – shares new exercise conversion at Jan. 1 shares of options of bonds *Preferred dividends: 6% x $50 x 20 million shares = $60 million **Computation of Treasury Shares: 60 million shares x $12 exercise price $720 million proceeds ÷ $18 average share price 40 million treasury shares
Problem 19-14 (amounts in millions, except per share amounts) Basic EPS net preferred income dividends $1,476 – $60* $1,416 ——————————————————————————————————————— = ——— = $2.27 600 + 72 (4/12) 624 shares new at Jan. 1 shares Diluted EPS net preferred after-tax income dividends Interest savings $1,476 – $60* + $160 - 40% ($160) $1,512 ——————————————————————————————————————— = ——— = $2.09 600 + 72 (4/12) + (60 – 40)** + 80 724 shares new exercise conversion at Jan. 1 shares of options of bonds *Preferred dividends: 6% x $50 x 20 million shares = $60 million **Computation of Treasury Shares: 60 million shares x $12 exercise price $720 million proceeds ÷ $18 average share price 40 million treasury shares
Chapter%2019%20EPS.docx