Question
In: Accounting
The company has the following information for 2018 Net income $1,200,000 8% convertible $1,000 bonds issued...
The company has the following information for 2018
|
Net income |
$1,200,000 |
||||
|
8% convertible $1,000 bonds issued 1/1/15 for $2,140,472 yielding 7% with annual coupons – Due 1/1/25 - Each bond converts to 50 shares of common stock |
$2,000,000 face amount |
||||
|
9% convertible, cumulative $100 par preferred stock -Each share converts to 3 shares of common stock |
$3,000,000 |
||||
|
Common stock, $10 par |
$5,000,000 |
||||
|
Common stock options (granted in 2016) to purchase 60,000 shares of common stock at $20 per share |
|||||
|
Tax rate |
25% |
||||
|
Average market price per share for common stock during the year |
$26 |
||||
- Compute basic and diluted EPS for 2018 (to the nearest tenth of a cent).
- Compute basic and diluted EPS for 2018 assuming the stock options were granted on March 1, 2018.
- Compute basic and diluted EPS for 2018 assuming the stock options were granted on March 1, 2018 and the debt was issued on July 1, 2018 (don’t forget to adjust net income).
Prepare an amortization schedule first
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Bentley has the following information for 2018: Net income $1,200,000 8% convertible $1,000 bonds issued 1/1/15...
Bentley has the following information for
2018:
Net income
$1,200,000
8% convertible $1,000 bonds issued 1/1/15 for $2,140,472
yielding 7% with annual coupons – Due 1/1/25
- Each bond converts to 50 shares of common stock
$2,000,000 face amount
9% convertible, cumulative $100 par preferred stock
-Each share converts to 3 shares of common stock
$3,000,000
Common stock, $10 par
$5,000,000
Common stock options (granted in 2016) to purchase 60,000 shares
of common stock at $20 per share
Tax rate...
Net income for the year $1,210,000 7% convertible bonds issued at par ($1,000 per bond); each...
Net income for the year
$1,210,000
7% convertible bonds issued at par ($1,000 per bond); each bond
is convertible into
30 shares of common stock
2,000,000
6% convertible, cumulative preferred stock, $100 par value; each
share is convertible
into 3 shares of common stock
4,080,000
Common stock, $10 par value
6,130,000
Tax rate for 2021
20%
Average market price of common stock
$25 per share
There were no changes during 2021 in the number of common shares,
preferred shares,...
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On January 1, 2018, Paradiso Company issued 1,000 of its 8%,
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with equity). Interest is payable annually at December 31. Each
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A firm has sales of $10, 000,000 in 2018, and operating income of $1,200,000 and net...
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Use the 3-factor DuPont Identity to calculate its ROE.
What’s its retention ratio?
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In 2019, Pharoah Enterprises issued, at par, 60 $1,000, 8% bonds, each convertible into 100 shares...
In 2019, Pharoah Enterprises issued, at par, 60 $1,000, 8%
bonds, each convertible into 100 shares of common stock. Pharoah
had revenues of $18,800 and expenses other than interest and taxes
of $8,000 for 2020. (Assume that the tax rate is 20%.) Throughout
2020, 1,800 shares of common stock were outstanding; none of the
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(Round answer to 2 decimal places, e.g.
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Earnings per share
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(b)...
In 2019, Marigold Enterprises issued, at par, 60 $1,000, 8% bonds, each convertible into 100 shares...
In 2019, Marigold Enterprises issued, at par, 60 $1,000, 8%
bonds, each convertible into 100 shares of common stock. Marigold
had revenues of $16,000 and expenses other than interest and taxes
of $6,700 for 2020. (Assume that the tax rate is 20%.) Throughout
2020, 2,400 shares of common stock were outstanding; none of the
bonds was converted or redeemed.
(a) Compute diluted earnings per share for 2020.
(Round answer to 2 decimal places, e.g.
$2.55.)
Earnings per share
$
(b)...
In 2019, Marigold Enterprises issued, at par, 60 $1,000, 8% bonds, each convertible into 100 shares...
In 2019, Marigold Enterprises issued, at par, 60 $1,000, 8%
bonds, each convertible into 100 shares of common stock. Marigold
had revenues of $16,000 and expenses other than interest and taxes
of $6,700 for 2020. (Assume that the tax rate is 20%.) Throughout
2020, 2,400 shares of common stock were outstanding; none of the
bonds was converted or redeemed.
(a) Compute diluted earnings per share for 2020.
(Round answer to 2 decimal places, e.g.
$2.55.)
Earnings per share
$
(b)...
In 2016, Pronghorn Enterprises issued, at par, 60 $1,000, 8% bonds, each convertible into 100 shares...
In 2016, Pronghorn Enterprises issued, at par, 60 $1,000, 8%
bonds, each convertible into 100 shares of common stock. Pronghorn
had revenues of $18,200 and expenses other than interest and taxes
of $8,400 for 2017. (Assume that the tax rate is 40%.) Throughout
2017, 2,000 shares of common stock were outstanding; none of the
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share for 2017. (Round answer to 2 decimal places, e.g. $2.55.)
Earnings per share $ (b)...
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