Asistensi AK2

Pertemuan ke -4 (Basic and Dilluted EPS)

Asisten : Kinta Khristina

Problem 1
Commander Corporation had $900.000 net income in 2012. On january 1,2012 there were
220.000 ordinary shares outstanding. On April 1, 2012, 20.000 shares were issued and on
September 1,2012, Commander Corporation bought 30.000 treasury shares. There are 30.000
options to buy ordinary share at $40 per share outstanding. The market price of the ordinary
share averaged $50 during 2012. The tax rate for the year is 25%.
During 2012, there were 20.000 shares of convertible preference share outstanding. The
preference share is $100 par, pays $7 a year dividend, and is convertile into 3 shares of
ordinary shares. Commander Corporation issued $2.000.000 of 8% convertible bonds at face
value during 2010. Each $1.000 bond is convertible into 20 shares of ordinary shares.
Compute the Commander Corporation diluted EPS!

Problem 2
Presented below are Axis Incs Balance Sheet as of december 31,2012
Account
Cash
Account Receivable
Inventory
Land
Building
Accumulated Depreciation
Investment in Centro Co.
Total

Axis Incs
$470.000
300.000
780.000
467.500
750.000
(330.000)
262.500
2.700.000

Accounts Payable
Bonds Payable
Share capital Preference ($10 par value,
10%)
Share capital Ordinary ( $10 Par value )
Retained earnings
Total

120.000
900.000
600.000
450.000
630.000
2.700.000

Additional Information:

Axiss 8% bonds can be converted into 20.000 ordinary shares

Axiss preference shares can be converted into 36.000 ordinary shares
The average market price of Axiss ordinary shares is $60
Axis reported 2012 net income of $900.000 from its own operation and paid $300.000
of cash dividend
The company is subject to 30% income tax rate

Based on the above information , you are required to calculate Basic and Diluted EPS!
Problem 3
On January 1,2010 PT Sekawan Securities issued 10-year Rp 3,000,000,000 face value,6%
bonds, at par. Each Rp 1,000,000 bond is convertible into 15 shares of PT Sekawan Securities
common stock. PT Sekawan Securitiess net income in 2010 is Rp240,000,000 and its tax
rate is 30%. PT Sekawan Securities had 100,000 shares of common stock outstanding
throughout 2010. None of the bonds were converted in 2010.
Instructions
a. Compute diluted EPS for 2010
b. Assuming the fact as above, except that Rp 1,000,000,000 of 6% convertible
preferred stock was issued instead of the bonds. Each Rp 100,000 preferred share
is convertible into 5 shares of PT Sekawan Securities common stock
Problem 4 ( Homework)
PT Sahabat Securities Tbk, a sister company of PT Sekawan Securities, earned Rp
260,000,000 during a period when it had an average of 100,000 shares of common
stockoutstanding. The common stock sold at an average market price of Rp 15,000 per share
during the period. Also outstanding were 30,000 warrants that could be exercised to purchase
one share of common stock for Rp 10,000 for each warrant exercised.
Instructions
a.Are the warrants dilutive?
b.Compute basic and diluted EPS
( Hint : penerapan untuk warrant mirip dengan option )