Calculations please
Question 9 [20 points] $17,000,000 The following data relate to CanTech Supply: Year ended December 31, 2017 From the Income Statement Net income From the Balance Sheet Long-term debt: 18% debentures, due October 1, 2039 Shareholders' equity (Note 1) Convertible, callable, voting preferred shares of no-par value, 29 cents cumulative dividend; authorized 630,000 shares, issued and outstanding 630,000 shares Common shares, voting, no par, authorized 5,400,000 shares, issued and outstanding, 374,160 shares Common stock conversion rights 8,692,000 10,900,000 13,300,000 320,000 From the Disclosure Notes The 29-cent convertible preferred shares are callable by the company after March 31, 2040, at $59 per share. Each share is convertible into 1 common share. Options to acquire 465,696 common shares at $67 per share were outstanding during 2017 Other information: a. Cash dividends of 11.80 cents per common share were declared and paid each quarter. b. The 630,000 convertible preferred shares were issued for assets in a purchase transaction in 2015. The dividend was declared and paid on December 15, 2017. Each share is convertible into 1 common share. c. Options to buy 465,696 common shares at $67 per share for a period of 6 years were issued along with the convertible preferred shares mentioned in (b). d. At the end of 2016, 360,000 common shares were outstanding. On April 30, 2017, 14,160 shares were issued for cash. e. A tax rate of 21% is assumed. f. Common shares traded at an average market price of $68 during the year. Complete the following calculations of income available to common shares and weighted average number of shares for diluted earnings per share (EPS). Please make sure your final answer(s) are accurate to 2 decimal places Income (numerator) # of shares (denominator) EPS Basic EPS Diluted EPS Options Cumulative subtotal Preferred shares Diluted EPS Question 9 [20 points] $17,000,000 The following data relate to CanTech Supply: Year ended December 31, 2017 From the Income Statement Net income From the Balance Sheet Long-term debt: 18% debentures, due October 1, 2039 Shareholders' equity (Note 1) Convertible, callable, voting preferred shares of no-par value, 29 cents cumulative dividend; authorized 630,000 shares, issued and outstanding 630,000 shares Common shares, voting, no par, authorized 5,400,000 shares, issued and outstanding, 374,160 shares Common stock conversion rights 8,692,000 10,900,000 13,300,000 320,000 From the Disclosure Notes The 29-cent convertible preferred shares are callable by the company after March 31, 2040, at $59 per share. Each share is convertible into 1 common share. Options to acquire 465,696 common shares at $67 per share were outstanding during 2017 Other information: a. Cash dividends of 11.80 cents per common share were declared and paid each quarter. b. The 630,000 convertible preferred shares were issued for assets in a purchase transaction in 2015. The dividend was declared and paid on December 15, 2017. Each share is convertible into 1 common share. c. Options to buy 465,696 common shares at $67 per share for a period of 6 years were issued along with the convertible preferred shares mentioned in (b). d. At the end of 2016, 360,000 common shares were outstanding. On April 30, 2017, 14,160 shares were issued for cash. e. A tax rate of 21% is assumed. f. Common shares traded at an average market price of $68 during the year. Complete the following calculations of income available to common shares and weighted average number of shares for diluted earnings per share (EPS). Please make sure your final answer(s) are accurate to 2 decimal places Income (numerator) # of shares (denominator) EPS Basic EPS Diluted EPS Options Cumulative subtotal Preferred shares Diluted EPS
