Answered step by step
Verified Expert Solution
Question
1 Approved Answer
CH Holdings Inc. has net earnings of $5,526,000 for the year ended 31 December 20X5. It has convertible bonds currently outstanding with a face value
CH Holdings Inc. has net earnings of $5,526,000 for the year ended 31 December 20X5. It has convertible bonds currently outstanding with a face value of $14,926,000 and a book value of $7,899,852 at 1 January, 20X5. The bonds have a coupon interest of3.50% payable semi-annually on 30 June and 31 December. The effective interest rate on similar bonds with no conversion option at the time of issue was 13.50%. The bonds have a conversion price of $68 per share. The weighted average number of shares outstanding for the year was 1,360,000. CH's income tax rate is 28% Required: Compute the basic and diluted EPS for CH Holdings Inc. (Do not round intermediate calculations and round your answer to 2 decimal places.) Basic EPS Diluted EPS
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