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Company Blah Blah Blah (BBB) has the following Capital Structure as of January 1, 2019: Preferred Shares, 150,000 outstanding, 8% cumulative $56,000,000 Common Shares, 1,000,000
Company Blah Blah Blah (BBB) has the following Capital Structure as of January 1, 2019:
Preferred Shares, 150,000 outstanding, 8% cumulative $56,000,000
Common Shares, 1,000,000 outstanding, 1,500,000 authorized 110,000,000
Debt 6 years, 10% coupon rate, issued at par, convertible 560,000,000
During the year the following transactions occurred:
- On February 1st, 100,000 Common Shares were bought and retired for $205 per share;
- On April 1st, 2:1 stock split was declared and paid, market price was $110
- On June 1st, 15,000 Common Shares were issued for $115 per share;
- On October 1st, 1% stock dividend was declared and paid, market price was $105;
- Due to cash flow issues, no cash dividends were declared or paid during the period;
- Net Income for the period was $25,000,000, which includes a $750,000 pretax loss from a Discontinued Operation and a 25% tax rate.
- The Bonds are convertible into Common Shares every $1,000 of Bonds can be converted into 5 Common Shares;
- There are 50,000 options past their vesting period and expire in two years each option can be converted into 1 Common Share for $100;
- Market Price of the Common Shares during the year:
- January 1, 2018 at $90;
- December 31, 2018 at $112.50;
- 12 month average at $115.00.
Required: Based on the above information, please calculate the Basic and Diluted Earnings Per Shares for BBB for December 31, 2019.
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