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All info is provided 2) MiniMike, Inc. has the following information for 2020: Net income $1,200,000 8% convertible $1,000 bonds issued 1/1/15 for $2,140,472 yielding
All info is provided
2) MiniMike, Inc. has the following information for 2020: 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 45 shares of common stock $2,000,000 face amount 10% 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 20% $25 Average market price per share for common stock during the year A. Compute basic and diluted EPS for 2020 (to the nearest tenth of a cent). B. Compute basic and diluted EPS for 2020 assuming the stock options were granted on April 1, 2020. C. Compute basic and diluted EPS for 2020 assuming the stock options were granted on April 1. 2020 and the debt was issued on July 1, 2020 (don't forget to adjust net income) Hint - prepare an amortization schedule for the bonds before you do anything else. 2) MiniMike, Inc. has the following information for 2020: 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 45 shares of common stock $2,000,000 face amount 10% 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 20% $25 Average market price per share for common stock during the year A. Compute basic and diluted EPS for 2020 (to the nearest tenth of a cent). B. Compute basic and diluted EPS for 2020 assuming the stock options were granted on April 1, 2020. C. Compute basic and diluted EPS for 2020 assuming the stock options were granted on April 1. 2020 and the debt was issued on July 1, 2020 (don't forget to adjust net income) Hint - prepare an amortization schedule for the bonds before you do anything elseStep by Step Solution
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