Ozarka Products Reported $9,500,000 in Net Income for the Current

question 69

Essay

Ozarka Products reported $9,500,000 in net income for the current year. The company had $5,000,000 of 7% cumulative, preferred stock outstanding all year, along with, $10,000,000 of 6% bonds. Each $1,000 bond had 4 detachable stock warrants and each warrant allowed the warrant holders to buy a share of stock for $60. The average share price for the year was $80. Common shares outstanding at the beginning of the year was 4,000,000, but on June 15, the company declared a 10% stock dividend. Compute both basic and diluted EPS when the tax rate is 40%.

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Definitions:

Organizations

Structured groups of people with a common purpose, such as businesses, governmental agencies, or nonprofits.

Working Closely

Collaboration and close interaction among team members, departments, or partner organizations to achieve common goals or resolve issues.

Financial Based 3PL

A third-party logistics provider that offers financially focused services, including cost management, freight payment, and financial settlement, in addition to traditional logistical services.