The following information was taken from the books and records of Ludwick, Inc.:1.2.3.(a1)Net incomeCapital structure:Convertible 6% bonds, each of the 300, $1,000 bonds is convertible into 50 shares of common stock atthe present date and for the next 10 years$10 par common stock, 200,000 shares issued and outstanding during the entire yearStock warrants outstanding to buy 16,000 shares of common stock at $20 per sharea.(a2)b.C.Other information:a.b.C.d.e.Bonds converted during the yearIncome tax rateConvertible debt was outstanding the entire yearAverage market price per share of common stock during the yearWarrants were outstanding the entire yearf. Warrants exercised during the yearYour answer is correct.Compute basic earnings per share. (Round answer to 2 decimal places, e.g. 52.75.)Basic earnings per share $e Textbook and MediaYour answer is partially correct.WarrantsCompute diluted earnings per share. (Round answers to 2 decimal places, e.g. 52.75.)SecurityCommon Stock$$Conversion Bonds $EPS.241.502.402.23$480,000300,0002,000,000None30%$32NoneAttempts: unlimited

It represents the portion of a company's profit allocated to each outstanding share of common stock.…

The following information was taken from the books and records of Ludwick, Inc.: 1. 2. Net income Capital structure: Convertible 6% bonds, each of the 300, $1,000 bonds is convertible into 50 shares of common stock at the present date and for the next 10 years $10 par common stock, 200,000 shares issued and outstanding during the entire year Stock warrants outstanding to buy 16,000 shares of common stock at $20 per share a. b. C. $480,000 300,000 2,000,000

The following information was taken from the books and records of Ludwick, Inc.: 1. 2. Net income Capital structure: Convertible 6% bonds, each of the 300, $1,000 bonds is convertible into 50 shares of common stock at the present date and for the next 10 years $10 par common stock, 200,000 shares issued and outstanding during the entire year Stock warrants outstanding to buy 16,000 shares of common stock at $20 per share a. b. C. $480,000 300,000 2,000,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 26P

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