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6.Plymouth Company holds a 90% interest in Savannah, Inc., which was acquired in a previous year. As of the end of the current fiscal period,
6.Plymouth Company holds a 90% interest in Savannah, Inc., which was acquired in a previous year. As of the end of the current fiscal period, the following information is available:
Plymouth
Savannah
Company
Inc.
Internally generated net income
$80,000
$60,000
Weighted average common shares outstanding
25,000
12,000
Preferred shares 5% convertible, par $100
1,000
Preferred shares 10% nonconvertible, par $2
5,000
Required:
Compute consolidated basic earnings per share for the current year. Ignore any tax effects.
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