Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please help verify the answers i got and help me to explain how to fill out the last table in the last picture I am
Please help verify the answers i got and help me to explain how to fill out the last table in the last picture I am confused.
Question 4 --/10 View Policies Current Attempt in Progress Bramble Corporation had net income of $92,000 for the fiscal year ending December 31, 2021. The company pays 15% income tax. For fiscal 2021, the weighted average number of common shares was 23,000. Throughout fiscal 2021 Bramble had a $510,000, 5% bond that was convertible to 11,000 common shares. On September 1, 2021, the company sold another new $1,035,000, 8% bond that was convertible to 21,000 common shares. Calculate Bramble's basic earnings per share. (Round answer to 2 decimal places, e.g. 15.25.) Basic EPS $ 4.00 e Textbook and Media Calculate the after-tax interest paid on the 5% bonds. After-tax interest on 5% bonds 21675 Determine an incremental per share effect for 5% bonds. (Round earnings per share to 3 decimal places, e.g. 15.257.) Incremental Numerator Effect Potentially dilutive security EPS Incremental Denominator Effect 11000 5% Bonds $ 21675 $ 1.971 e Textbook and Media Calculate the after-tax interest paid on the 8% bonds. (Round answer to 0 decimal places, e.g. 5,125.) After-tax interest on 8% bonds 23460 e Textbook and Media Determine an incremental per share effect for 8% bonds. (Round earnings per share to 3 decimal places, e.g. 15.257.) Incremental Numerator Effect Incremental Denominator Effect Potentially dilutive security EPS 8% Bonds 23460 21000 1.117 1.117 e Textbook and Media Rank the potentially dilutive securities from most dilutive to least dilutive. 5% bonds Rank 1 - 8% bonds Rank 2 e Textbook and Media Calculate Bramble's diluted earnings per share. (For simplicity, ignore the requirement to record the debt and equity portions of the convertible bond separately). (Round calculations of EPS to 3 decimal places, e.g. $3.545 and provide final answer to 2 decimal places, e.g. 15.25.) Numerator Denominator EPS Basic EPS 4.00 8% bonds Sub Total 2.88 5% bonds 0.91 Diluted EPSStep 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