Common stock transactions As of 1/1/X7, the company had 6,000,000 authorized shares of $1 stated value common stock, and 750,000 shares issued and outstanding. 10/1/X7, issued in a 2 for 1 stock split. After the stock split, the stated value was reduced to $0.50 per share and there were 12,000,000 authorized shares. 12/1/X7, issued 180,000 shares at $52 per share (post-split price) Treasury stock transactions (accounted for using the par value method) 3/31/X7 purchased 20,000 shares at $105 per share 7/1/X7 sold 8,000 shares at $102 per share. Stock warrants On 2/1/X7, 30,000 warrants were issued at $10 each. Initially, each warrant allowed the bearer to exchange the warrant and $36 for one share of common stock. Effective 10/1/21, each warrant became exchangeable for two common shares at a price of $18 per share. No warrants were exercised during 20x7. Convertible Bonds $4,000,000 of unsecured, convertible, 25-year, 5% bonds issued on 7/1/X7. The initial conversion rate was 30 shares of common stock for each $1,000 bond. Effective 10/1/X7, the conversion rate became 60 shares per $1,000 bond. As of 12/31/X7, all bonds were still outstanding and unconverted, and all semi-annual interest payments had been paid. No bonds were converted during 20X7. Net Income During 20X7, the company reported $3,100,000 of net income. Tax Rate The company's applicable tax rate is 32% Common stock prices Beginning, quarterly, ending, and average prices for the company's common stock are provided below. Date 1/1/X7 4/1/X7 7/1/X7 10/1/X7 12/31/X7 Average*
Common Stock Price 97.00 98.00 101.00 52.00 55.00 50.00 *Annual average adjusted for the stock split on 10/1/X7.
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