Answered step by step
Verified Expert Solution
Question
1 Approved Answer
On Jan 1, 2018, Zibeon, Inc. had 8,400,000 shares of Class A common stock outstanding. On August 1, 2018, the company purchased 560,000 treasury shares.
On Jan 1, 2018, Zibeon, Inc. had 8,400,000 shares of Class A common stock outstanding. On August 1, 2018, the company purchased 560,000 treasury shares. The board declared a 3-for-1 stock split on Oct 1, 2018. The only potentially dilutive security was $20,000,000 of 6.2% debentures, each with a face value of $1,000. The debentures had been issued in 2014 and were convertible into 20 shares of common stock. The companys 2018 net income was $24,660,000. The tax rate was 30%. Calculate basic and fully diluted eps.
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