As of the beginning of the year HalfPass Productions, Inc., had the following complex capital structure:
3,000,000 common shares outstanding.
175,000 options with an exercise price of $22.
250,000 warrants with an exercise price of $18.
During the year:
On March 1, the company issued 100,000 new shares of common stock.
On July 1, the board of directors declared a 15% stock dividend.
On September 1, the company repurchased 125,000 shares.
Net income (after-tax) for the year was $7,500,000.
The company paid common dividends of $2,750,000 and preferred dividends of $1,300,000.
The average market price for the common stock was $25 per share.
