Assumetheparentowns90%ofthesubsidiaryandhasanadjustedinternallygeneratednetincomeof$100,000and5,000sharesofcommonstockoutstanding.Alsoassumetheparenthasdilutivebondsoutstandingthatareconvertibleinto2,000sharesofcommonstockandtheinterestpaidonthesebondswas$4,000.Whatistheconsolidateddilutedearningspershare(DEPS)ifthesubsidiarydatainclude:3,000sharesofcommonstock,150sharesofconvertiblebondsthatareheldbyparent,5sharesofcommonstockthatarefromconvertiblebondsoutstandingbysubsidiaryandsubsidiarydilutedearningspershareof$6.88. ANSWERS: 18.25 14.86 25.48 20.80
Assumetheparentowns90%ofthesubsidiaryandhasanadjustedinternallygeneratednetincomeof$100,000and5,000sharesofcommonstockoutstanding.Alsoassumetheparenthasdilutivebondsoutstandingthatareconvertibleinto2,000sharesofcommonstockandtheinterestpaidonthesebondswas$4,000.Whatistheconsolidateddilutedearningspershare(DEPS)ifthesubsidiarydatainclude:3,000sharesofcommonstock,150sharesofconvertiblebondsthatareheldbyparent,5sharesofcommonstockthatarefromconvertiblebondsoutstandingbysubsidiaryandsubsidiarydilutedearningspershareof$6.88.
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ANSWERS:
18.25
14.86
25.48
20.80
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Authors: Debra JeterJames Reeve, Jonathan Duchac, Horace Brock, Paul Chaney
4th Edition
