Question
Marigold Corp. had 197000 shares of common stock, 20200 shares of convertible preferred stock, and $1492000 of 6% convertible bonds outstanding during 2021. The preferred
Marigold Corp. had 197000 shares of common stock, 20200 shares of convertible preferred stock, and $1492000 of 6% convertible bonds outstanding during 2021. The preferred stock is convertible into 39400 shares of common stock. During 2021, Marigold paid dividends of $0.80 per share on the common stock and $3 per share on the preferred stock. Each $1,000 bond is convertible into 30shares of common stock. The net income for 2021 was $610000 and the income tax rate was 30%. Basic earnings per share for 2021 is (rounded to the nearest penny)
A$2.28.
B$2.58.
C$2.50.
D$2.79.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started