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I need hep with calulating teh earning per share spreadsheet. Peyton plans to raise $1,000,000 million of additional capital for the coming year. They anticipate
I need hep with calulating teh earning per share spreadsheet.
Peyton plans to raise $1,000,000 million of additional capital for the coming year. They anticipate | |||||||
that it will enable them to earn an additional $600,000 after tax. What would be the impact on | |||||||
earnings per share if the raise the $1,000,000 by: | |||||||
a) issuing 10,000 share of 10% $100 par value convertible preferred stock, where share | |||||||
can be coverted into 10 shares of Peyton common stock? | |||||||
b) issuing $1,000,000 of 8% convertible bond, each $1,000 bond can be converted into? | |||||||
5 shares of Peyton common stock? | |||||||
c) $500,000 of each of the above? | |||||||
Net Income | |||||||
Less: Preferred Dividends | |||||||
Earnings Available to Common Shareholders | |||||||
Common Shares Outstanding | |||||||
Basic EPS | |||||||
a | If all preferred shares are converted: | ||||||
Net Income | |||||||
Additional Common Shares | |||||||
Common Shares Outstanding after conversion | |||||||
EPS if preferred shares converted | |||||||
Preferred shares are antidilutive | |||||||
b | If all bonds are converted: | ||||||
Net Income | |||||||
Less: Preferred Dividends | |||||||
Add back interest on bonds, net of income tax | |||||||
Earnings Available to Common Shareholders | |||||||
Additional Common Shares | |||||||
Common Shares Outstanding after conversion |
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