Consider the Following Data for ABC Inc for the Year

question 6

Essay

Consider the following data for ABC Inc for the year ended December 31st, 2014:
New ordinary shares issued
Number issued 100,000 Issue date March 1
Convertible preferred shares
Issue date carry forward from prior year Number issued 600,000
Conversion factor each share is convertible into one ordinary share Conversion during year 500,000 on July 1
Dividend rate $.05 per share per quarter, paid at the end of each quarter (March 31, June 30, Sept.30 Dec.31)
Convertible debentures
Par value $10,000,000
Issue date carry forward from prior year
Conversion factor each $1000 par value bond is convertible into 20 shares Conversion during year entire issue converted May 1
Annual interest rate 4%, payable semi-annually on November 1 and May 1
Warrants
Issue date carry forward from prior year
Exercise factor total warrants issued can be exchanged for 500,000 shares at a price of $60 per share Exercised during year: All warrants were exercised September 1
Avg.mkt.price from beginning of year to September 1: $66.101426 per share
Options
Issue date July 1
Exercise factor total options issued can be exchanged for 1,000,000 ordinary shares at $85 per share.Expiry date 10 years from date of issue
Exercised during year: none
Ordinary shares outstanding, Jan.1, 2014: 3,300,000
Year-end Dec.31, 2014:
Tax rate 40%
Pre-tax rate of return 18%
Average market price for the year $71 per shareNet income for 2014: $7,500,000 Required:
Compute ABC Inc's Basic and Fully Diluted EPS figures for the year ended December 31st, 2014.

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Definitions:

Rapport

A positive relationship characterized by mutual respect, trust, and understanding between individuals or groups.

Sales Presentation

A structured pitch or demonstration aimed at persuading potential buyers to purchase a product or service.

Preapproach Step

The stage in the sales process where the salesperson gathers relevant information about a potential customer before making the initial contact or sales pitch.

Key Decision Makers

Individuals or groups within an organization who have the authority to commit resources and make significant choices affecting the direction and outcomes of projects or business strategies.