Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hominem Inc has 100,000 common shares outstanding. Eamings from continuing operations amounted to $1,840,000 (fter tax) for the year ended 31 December 20X4. Hominems income

image text in transcribed
Hominem Inc has 100,000 common shares outstanding. Eamings from continuing operations amounted to $1,840,000 (fter tax) for the year ended 31 December 20X4. Hominems income tax rate is 25%, The company had no discontinued operations. At the end of 20X4 the market price o the company's common shares was S44 Hominem had these additional components in its capital structure at the end of the year 21,000 cumulative preferred shares outstanding since 20X2: each share is enbirled to an annual dividend of $15 per share and is convertible into five shares of common after 30 June 20X9 . 4% deben res amounting to S840 000 were issued on 1 January 20X4 this ssue date, the bonds were recorded at S765 00. The debentures are convert ble into 10 shares per S 1 000 On 1 January 20X4 similar bonds with no conversion options had a market yeld of g% Interest is payable annual y Outstanding options permitting the holder to buy 5,000 common shares in 20X6 or later for $52 per share Required: 1. Compute basic EPS. (Do not round intermediate calculations and round your answer to 2 decimal Do not round intermediate calculations and round your answer to 2 decimal places) 2 Compute diuted EPS, using a cescade feppropriete (Do not round intermediate calculations and round your answer to 2 decimal places.)

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

Critical Marketing Audit The Case Of Apple Inc.

Authors: Joseph Katie

1st Edition

365637712X, 978-3656377122

More Books

Students also viewed these Accounting questions

Question

In a small group, share your thoughts on this dilemma.

Answered: 1 week ago