Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Paris Co. has a December 31 year-end date. Data for 2021 shows: There were 60,000, $3, cumulative preferred shares outstanding as of January 1, 2021;

image text in transcribed
Paris Co. has a December 31 year-end date. Data for 2021 shows: There were 60,000, $3, cumulative preferred shares outstanding as of January 1, 2021; each preferred share is convertible into 3 common shares. . There were 370,000 common shares outstanding as of January 1, 2021. On April 30, 2021, 60,000 common shares were issu for $10 each. No other shares were issued in 2021. On November 1, 2021, 30,000 common shares were reacquired from shareholders and cancele Paris Co.'s net income for 2021 is $1,000,000, which includes a $100,000 after tax discontinued loss. Dividends declared in 2021 on the preferred stock were $1 per share. 25,000 warrants were outstanding throughout 2021; each warrant permits the owner to buy 2 common shares for $20 per share. A $2,000,000, 6% convertible bond was issued on June 1, 2021; each $1,000 bond is convertible into 40 common shares The income tax rate for 2021 is 30%. The average market price of common shares was $25 per share during 2021. Required: Calculate the necessary earnings per share amounts for 2021. !!! III 7 A- B I EPS Item Net income # of common shares Paris Co. has a December 31 year-end date. Data for 2021 shows: There were 60,000, $3, cumulative preferred shares outstanding as of January 1, 2021; each preferred share is convertible into 3 common shares. . There were 370,000 common shares outstanding as of January 1, 2021. On April 30, 2021, 60,000 common shares were issu for $10 each. No other shares were issued in 2021. On November 1, 2021, 30,000 common shares were reacquired from shareholders and cancele Paris Co.'s net income for 2021 is $1,000,000, which includes a $100,000 after tax discontinued loss. Dividends declared in 2021 on the preferred stock were $1 per share. 25,000 warrants were outstanding throughout 2021; each warrant permits the owner to buy 2 common shares for $20 per share. A $2,000,000, 6% convertible bond was issued on June 1, 2021; each $1,000 bond is convertible into 40 common shares The income tax rate for 2021 is 30%. The average market price of common shares was $25 per share during 2021. Required: Calculate the necessary earnings per share amounts for 2021. !!! III 7 A- B I EPS Item Net income # of common shares

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Winning Compliance Auditing With Gung Fu Fighting Philosophy

Authors: Phillip Lee

1st Edition

B0CBD8KT6P, 979-8223104414

More Books

Students also viewed these Accounting questions

Question

7. Identify six intercultural communication dialectics.

Answered: 1 week ago