Question
on January 1, 2025 Boita company issued 10 year 1870000 face value 6% bonds at par each $1000 bond is convertible into 15 shares of
on January 1, 2025 Boita company issued 10 year 1870000 face value 6% bonds at par each $1000 bond is convertible into 15 shares of Bonita common stock. Bonita's net income in 2025 was $462800 and its tax rate was 20%. the company had 104000 shares of common stock outstanding throughout 2025. none of bonds were converted in 2025. A. compute diluted earnings per share for 2025. B. compute diluted earnings per share for 2025 assuming the same facts except that 1040000 of 6% convertible preferred stock was issued instead of the bonds. each $100 preferred share is convertible into 5 shares of Bonita common stock
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