Question Details

(Solution) - EPS with Contingent Issuance Agreement Brooks Inc

Brief item decscription

Solution download


Item details:

(EPS with Contingent Issuance Agreement) Brooks Inc. recently purchased Donovan Corp., a large mid western home Painting Corporation. One of the terms of the merger was that if Donovan?s income for 2011 was $110,000 or more, 10,000 additional shares would be issued to Donovan?s stockholders in 2012. Donovan?s income for 2010 was $125,000.
(a) Would the contingent shares have to be considered in Brooks?s 2010 earnings per share computations?
(b) Assume the same facts, except that the 10,000 shares are contingent on Donovan?s achieving a net income of $130,000 in 2011. Would the contingent shares have to be considered in Brooks?s earnings per share computations for 2010?

 







About this question:
STATUS
Answered
QUALITY
Approved
ANSWER RATING

This question was answered on: Jul 11, 2017

PRICE: $15

Solution~000909922123.zip (18.37 KB)

Buy this answer for only: $15

Pay using PayPal (No PayPal account Required) or your credit card. All your purchases are securely protected by PayPal.
SiteLock

Need a similar solution fast, written anew from scratch? Place your own custom order

We have top-notch tutors who can help you with your essay at a reasonable cost and then you can simply use that essay as a template to build your own arguments. This we believe is a better way of understanding a problem and makes use of the efficiency of time of the student. New solution orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.

Order Now
v>