Question
On December 31, 2021, Sheffield Co. had 212,000 common shares outstanding. The company also had outstanding a convertible bond with a face value of $84,500
On December 31, 2021, Sheffield Co. had 212,000 common shares outstanding. The company also had outstanding a convertible bond with a face value of $84,500 that had been issued in 2015. The bond paid 6% interest per year and was convertible to 1,690 common shares. Sheffield Co. had net income for 2021 of $1,017,600 and was subject to a 30% income tax rate. (For simplicity, ignore the requirement to record the debt and equity portions of the convertible bond separately).
(a)
Calculate basic earnings per share. (Round answer to 2 decimal places, e.g. 15.25.)
Basic earnings per share | $Enter your answer in accordance to the question statement |
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