Question
Problem 19-16 (Algo) EPS; convertible bonds; treasury shares [LO19-4, 19-5, 19-6, 19-9] At December 31, 2021, the financial statements of Hollingsworth Industries included the following:
Problem 19-16 (Algo) EPS; convertible bonds; treasury shares [LO19-4, 19-5, 19-6, 19-9]
At December 31, 2021, the financial statements of Hollingsworth Industries included the following:
| Net income for 2021 | $ | 650 | million |
| Bonds payable, 8%, convertible into 53 million shares of common stock | $ | 300 | million |
| Common stock: | |||
| Shares outstanding on January 1 | 400 | million | |
| Treasury shares purchased for cash on September 1 | 36 | million | |
Additional data: The bonds payable were issued at par in 2019. The tax rate for 2021 was 25%. Required: Compute basic and diluted EPS for the year ended December 31, 2021. (Do not round intermediate calculations. Round "Earnings per share" answers to 2 decimal places. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)
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Fundamental Accounting Principles
Authors: John Wild, Ken Shaw, Barbara Chiappetta
22nd edition
9781259566905, 978-0-07-76328, 77862279, 1259566900, 0-07-763289-3, 978-0077862275
