Question
Bonita Corporation had net income for the current year ending December 31 2023 of $1,218,600. Throughout 2023 the following items were outstanding: 406,000 common shares
Bonita Corporation had net income for the current year ending December 31 2023 of $1,218,600. Throughout 2023 the following items were outstanding:
406,000 common shares
20,500 Class A $3 cumulative preferred shares that were convertible to common shares at a rate of 1:1
50,000 Class B $4 non-cumulative preferred shares that were convertible at a rate of 1 common share for every 2 preferred shares
$507,000, 8% bonds that were convertible to 13,000 common shares
$352,000, 10% bonds convertible to 11,000 common shares
No dividends were declared or paid in 2023. Bonitas tax rate is 25%
a) Determine an incremental per share effect for the Class B preferred Shares.
Potentially dilutive security | Incremental Numerator Effect | Incremental Denominator Effect | EPS |
Class B Preferred Shares |
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