Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Following is information taken from Riverbed Inc.'s December 31, 2021 balance sheet: 5% bonds payable, $5,656,000 maturing December 31, 2022, each $1,000 bond convertible into

image text in transcribed

image text in transcribed

Following is information taken from Riverbed Inc.'s December 31, 2021 balance sheet: 5% bonds payable, $5,656,000 maturing December 31, 2022, each $1,000 bond convertible into 19 common shares $5,656.000 8% bonds payable, $4,701,000, maturing December 31, 2023, each $1,000 bond convertible into 27 common shares at any time up to December 31, 2023 $4,701,000 Cumulative preferred shares, $5no-par value, convertible at 1 preferred share for 4 common shares, 51,700 shares outstanding $1,034,000 Common shares, no par-value, 2,986,000 shares outstanding Riverbed's net income for 2021 was $8,716,150, and the company was subject to an income tax rate of 20%. Both classes of bonds were outstanding the entire year, as were the preferred shares. The weighted-average number of common shares outstanding during the period was 3,599,000. (For simplicity, ignore the requirement to record the debt and equity portions of the convertible bond separately). Calculate the income effect of the dividends on preferred shares. $ Dividends on preferred shares e Textbook and Media Calculate Riverbed's basic EPS for 2021. (Round answer to 2 decimal places, e.g. 15.25.) $ Basic EPS e Textbook and Media Calculate the after-tax interest paid on the 5% bonds. $ After-tax interest on 5% bonds e Textbook and Media Calculate Riverbed's basic EPS for 2021. (Round answer to 2 decimal places, eg. 15.25.) $ Basic EPS e Textbook and Media Calculate the after-tax interest paid on the 5% bonds. $ After-tax interest on 5% bonds e Textbook and Media Determine an incremental per share effect for 5% bonds. (Round earnings per share to 3 decimal places, e.g. 15.257.) Incremental Numerator Effect Incremental Denominator Effect Potentially dilutive security EPS 5% Bonds $ $ e Textbook and Media Calculate the after-tax interest paid on the 8% bonds. $ After-tax interest on 8% bonds e Textbook and Media Determine an incremental per share effect for 8% bonds. (Round earnings per share to 3 decimal places, e.g. 15.257.) Incremental Numerator Effect Incremental Denominator Effect Potentially dilutive security EPS 8% Bonds $ $ e Textbook and Media Determine an incremental per share effect for $5 preferred shares. (Round earnings per share to 3 decimal places, e.g. 15.257.) Incremental Numerator Effect Incremental Denominator Effect Potentially dilutive security EPS $5 Preferred shares $ $ e Textbook and Media

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Information Systems

Authors: Steven M. Bragg

2nd Edition

164221079X, 9781642210798

More Books

Students also viewed these Accounting questions

Question

What modifier specifies that a variables value is fixed/constant?

Answered: 1 week ago

Question

Is there any formal training for teaching?

Answered: 1 week ago

Question

=+What do you want them to know?

Answered: 1 week ago

Question

=+1. How can you animate it?

Answered: 1 week ago