The Following Information Has Been Obtained from the Mastic Corporation

question 58

Multiple Choice

The following information has been obtained from the Mastic Corporation:
• 550,000 shares of common stock were outstanding on January 1,2015.
• Bonds convertible into 50,000 shares of common stock were issued on July 1,2015;the bonds have been determined to be dilutive.
• 36,000 shares of common stock were issued on November 1,2015.
• 24,000 shares of common stock were purchased on December 1,2015.
What is the weighted average number of shares to be used in the calculation of diluted earnings per share for 2015?

• A)612,000
• B)587,000
• C)604,000
• D)579,000

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Definitions:

Profit

The financial gain obtained when the revenue from business activities exceeds the expenses, costs, and taxes associated with sustaining the activity.

Top-Down Leadership

A leadership approach where decisions and policies are initiated by the upper levels of management and then cascaded down through the ranks.

Culture of the Organization

The shared norms, values, and practices that guide and shape behaviors and attitudes within a company or institution.

Incentives

Rewards or benefits offered to motivate individuals or groups to behave in a certain way or to achieve specific objectives.