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Crane Corporation had net income of $51,400 for the year ended December 31, 2020, and a weighted average number of common shares outstanding of 13,900.
Crane Corporation had net income of $51,400 for the year ended December 31, 2020, and a weighted average number of common shares outstanding of 13,900. The following information is provided regarding the capital structure:
1. | 8% convertible debt, 210 bonds each convertible into 41 common shares. The bonds were outstanding for the entire year. The income tax rate is 40%. The bonds were issued at par ($1,000 per bond). No bonds were converted during the year. | |
2. | 3% convertible, cumulative $110 preferred shares, 1,100 shares issued and outstanding. Each preferred share is convertible into 2 common shares. The preferred shares were issued at par and were outstanding the entire year. No shares were converted during the year. |
(a1)
Calculate the income effect of the dividends on preferred shares.
Dividends on preferred shares | $enter the Dividends on preferred shares in dollars |
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