Question
On January 1, 2020 Your Company issued $100,000 of 6% convertible (cumulative) preferred stock. Each $100 preferred share is convertible into 3 shares of common
On January 1, 2020 Your Company issued $100,000 of 6% convertible (cumulative) preferred stock. Each $100 preferred share is convertible into 3 shares of common stock. Your Companys Income before taxes in 2020 was $400,000 and its tax rate is 20%. The company has 100,000 shares of common stock outstanding throughout 2020. None of the preferred stock was converted in 2020.
What is diluted EPS?
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Intermediate Accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson
6th edition
978-0077400163
