1 lump som allocation

Total cash 135,000

get the total for both types
of shares
Divide Ach by the total and then
multiply to the total cash
for allocation values
Cash xxx
common xxx
preferred xxx

2 Issue of shares
cash xxx
common XXX
shaves

3 Dividends in kind in exchange for

land FV o
hand xxx
shares xxx
4 Expense for shaves Expense xxx
shares XXX
5 Declaration of dividends
Dividends CRE xxx
Dividend xxx
payable
6 Repurchase buy back
l DR Cash
2 Determine value the shares
of
either common or preferred

common xx
xx
Eaphitaarfs cash xx
surplus
V
commonshavevaluey
sh a9efs
Of common
shares in the ant
if LOSS

Q
income 4501000
from cont
income 50,000
from dis cont
Nl

1 Basic EPS Nl Preferredshaves

weighted Average
Date commons Fraction average
shaves
Beg 912 156,000
Mauch l June 301000 4 12 10,000
160,000
 160,000
I
soo ooo 6 20,000
2 38
I 160 ooo
3801000
7 method
convertible shares if
20,000 6 1201000 1.5 vs 2 38
4 201000 801000
Dillutive t
Both NUM t Deh
b o

options 1 warrants Treasury

method
only effects the
denominator

Bonds converted
shares if converted
method

Both nvm t
denom D

warrants ex 101000 20 20010002

market price 25
8000 101000
2006
dd to denom
 Q 3 501000
F sooooo
1 commutative 2 501000
preferred shares
must deduct from
Nl