Answered step by step
Verified Expert Solution
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
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
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started