Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Company B (CB) had the following information for the year ended December 31, 2020: . Net income of $10 million. There were 500,000 common shares
Company B (CB) had the following information for the year ended December 31, 2020: . Net income of $10 million. There were 500,000 common shares outstanding at the beginning of 2020 The average market price of the common shares for the entire fiscal year was $50. Tax rate was 25%. Options issued to investors to buy 100,000 common shares of CB at $40 per share. 100,000 convertible preferred shares entitled to a cumulative dividend of $10 per share. Each preferred share is convertible into 1.5 common shares. 4% convertible bonds with a principal amount of $30 million, issued at par. Each $1,000 bond is convertible into 25 common shares. Market price of CB at December 31, 2020 was $ 42 On March 1, 2020 CB issued 100,000 shares. On September 30,2020 a 25% stock dividend was declared and issued. . . Required. Calculate basic and 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