JackieStamping began the current year with 470,000common shares outstanding and issued an additional 120,000shares on September1. The firm has $11,300,000, 1.5% convertible bonds on June 30 (i.e., $169,500coupon interest annually), which are convertible into 331,000 shares of common stock. The firm issued the bonds at par and did not convert any during the current year. It also had $1,170,000 par value, 4%nonconvertible, noncumulative preferred stock outstanding for the full year and declared dividends for the current year. The company is subject to a 40%effective tax rate and net income is $4,100,000. RequirementBased on this information, compute basic and diluted earnings per share for the current year.
JackieStamping began the current year with 470,000common shares outstanding and issued an additional 120,000shares on September1. The firm has $11,300,000, 1.5% convertible bonds on June 30 (i.e., $169,500coupon interest annually), which are convertible into 331,000 shares of common stock. The firm issued the bonds at par and did not convert any during the current year. It also had $1,170,000 par value, 4%nonconvertible, noncumulative
RequirementBased on this information, compute basic and diluted earnings per share for the current year.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
