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Apex Consulting showed the following data at December 31, 2017: Preferred shares: $2 cumulative, convertible (1 preferred : 4 common conversion); 300,000 authorized; 90,000 issued
Apex Consulting showed the following data at December 31, 2017: Preferred shares: $2 cumulative, convertible (1 preferred : 4 common conversion); 300,000 authorized; 90,000 issued and outstanding $650,000 Common shares: Unlimited authorized; 150,000 issued and outstanding at January 1, 2017; an additional 3,500,000 50,000 issued on July 1, 2017 Convertible debentures, 10% coupon rate; each $1,500 bond is convertible into 150 common shares. The 1,100,000 bonds were issued in 2016. Bond payable, 8% maturing in 2031. 750,000 Warrants, 60,000; each warrant plus $15 entitles the holder to receive 1 common share 40,000 Options: 22,500; each option allows the holder to purchase 1 common share at a price of $22. 45,000 Net income for the year ending December 31, 2017 850,000 Gain from discontinued operations, net of tax 60,000 Average common share market price throughout 2017 $27 The marginal tax rate for the company. 45% nor ahora nolaulation a) For the year ended December 31, 2017, complete the required earnings per share calculation below. Remember that if any of the options, bonds or shares has an anti-dilutive effect on EPS, it should not be included. In that case, fill in the information, but do not use the numbers in your calculations for diluted EPS. Please make sure your final EPS answers are accurate to 2 decimal places and other answers are accurate to the nearest whole number. Hint: All repurchases should be represented negatively. Income # of shares (numerator) (denominator) EPS Shares outstanding January 1 to July 1 July 1 to December 31 Basic EPS Warrants: Shares issued Shares repurchased... Options: Shares issued Shares repurchased. Preferred shares: Dividends saved Shares issued Bonds: Interest saved Shares issued Diluted EPS b) Complete the required disclosures for EPS reporting below. Please make sure your final answer(s) are accurate to 2 decimal places. Earnings per share: Basic Diluted Income from continuing operations Gain from discontinued operations, net of tax Net income
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