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Hill Corporation's capital structure is as follows: December 31 2020 2019 294,000 220,000 Outstanding shares of: Common stock. Nonconvertible, noncumulative preferred stock. 10% convertible bonds
Hill Corporation's capital structure is as follows: December 31 2020 2019 294,000 220,000 Outstanding shares of: Common stock. Nonconvertible, noncumulative preferred stock. 10% convertible bonds ... 12,000 12,000 Tk.800,000 TK. 800,000 The following additional information is available. (a) On September 1, 2020, Hill sold 74,000 additional shares of common stock. (b) Net income for the year ended December 31, 2020, was Tk. 920,000. (c) During 2020, Hill declared and paid dividends of Tk. 6 per share on its preferred stock. (d) The 10% bonds are convertible into 50 shares of common stock for each Tk. 1,000 bond. (e) Unexercised options to purchase 25,000 shares of common stock at Tk. 24.00 per share were outstanding at the beginning and end of 2020. The ending market price of Hill's common stock for 2020 was Tk. 34 per share. (1) Warrants to purchase 36,000 shares of common stock at Tk. 36 per share were attached to the preferred stock at the time of issuance. The warrants, which expire on December 31, 2025, were outstanding at December 31, 2020. (g) Hill's effective income tax rate was 30% for 2019 and 2020. Instructions: i. For the year ended December 31, 2020, compute basic EPS. [05] ii. Compute diluted EPS for 2020. [05]
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