Question
Company Z ends 2020 with 1,150,000 shares outstanding and a complex capital structure Company Z has at the beginning of 2021 120,000 stock options outstanding
Company Z ends 2020 with 1,150,000 shares outstanding and a complex capital structure
Company Z has at the beginning of 2021 120,000 stock options outstanding and earned with an exercise price of $25 and on July 1 30,000 more options are earned with an exercise price of $30
Company Z also has 5,000 convertible bonds (1,000/bond face value) with an interest rate of 4.5% and can be converted to common stock at a rate of 40 shares per bond
During 2021 Company Z repurchased 16,000 shares on the market on May 1 and August 1 and net income was $2,850,000 before any dividends - average price for shares was $27 and tax rate is 20% What was the basic and fully diluted Earnings per Share in 2021.
Company Z for 2022 has net income of $3,140,000 and 20,000 stock options were exercised on Mar 1 from the old ones and they converted 1,000 bonds on December 1. Average price for shares was $34
What was the basic and fully diluted Earnings per Share in 2022?
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