Question
Computing consolidated earnings per share (EPS) Assume the following facts about a parent and its 75% owned subsidiary company Parent Subsidiary Net income.................................................... $180,000 $45,000
Computing consolidated earnings per share (EPS)
Assume the following facts about a parent and its 75% owned subsidiary company
Parent Subsidiary
Net income.................................................... $180,000 $45,000
Common shares outstanding................ 50,000 22,000 (16500=75%
owned by parent)
Convertible preferred stock................... Dividends=$17100
convertible into 9000
shares of common stock
convertible bonds....................................... interest expense ........................................................................ tax= $7,200
convertible into
4500 shares of
common stock
Question: Compute diluted earnings per share
I already computed basic earnings per share and got $11.91 per share
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