Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Celestial Corporation, Year 2020 Net Income $1,100,000 Capital Structure Common Shares Change January 1, 2020 May 1, 2020 Issued Shares July 1, 2020 Stock Split

image text in transcribed

Celestial Corporation, Year 2020 Net Income $1,100,000 Capital Structure Common Shares Change January 1, 2020 May 1, 2020 Issued Shares July 1, 2020 Stock Split 1.5-1 October 1,2020 Purchase of Treasury Stock 30,000 265,000 65,000 Cumulative Shares Outstanding 500,000 530,000 795,000 730,000 $3,000,000 Preferred Stock, Cumulative, 5%, $100 par 30,000 shares issued & outstanding (adjusted for split) Each share is convertible into ten common shares Convertible Bonds, 5,000 10-year, 5% bonds issued at par in 2015 $5,000,000 Each bond is convertible into twenty shares of common stock (adjusted for split) Other Information: Average market price per share of common stock during 2020 = $150 Income Tax Rate = 30% (A) Calculate Weighted Average Number of Shares. (B) Calculate Basic EPS for Celestial Corporation. Round EPS to the nearest penny. C) Calculate Diluted EPS for Celestial Corporation. Round Diluted EPS to the nearest penny

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting For MBAs

Authors: Peter D. Easton, John J. Wild, Robert F. Halsey, Mary Lea McAnally

3rd Edition

0978727932, 978-0978727932

More Books

Students also viewed these Accounting questions