Answered step by step
Verified Expert Solution
Question
1 Approved Answer
ABC Co. had 200,000 ordinary shares, 20,000 convertible preference shares, and P1,000,000 of 5% convertible bonds outstanding during 2019. The preference shares are convertible into
ABC Co. had 200,000 ordinary shares, 20,000 convertible preference shares, and P1,000,000 of 5% convertible bonds outstanding during 2019. The preference shares are convertible into 40,000 ordinary shares. During 2019, ABC paid dividends of P.60 per share on the ordinary shares and P2 per share on the preference shares. Each P1,000 bond is convertible into 45 ordinary shares. The net income for 2019 was P400,000 and the income tax rate was 30%. Basic EPS for 2019 is (rounded to the nearest penny)*
3 points
A. P1.47
B. P1.61
C. P1.67
D. P1.80
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started