Question
Santos Company provided the following information for 2022: Common Stock Outstanding 100,000 shares Convertible Preferred, Total Par Value $50,000; Dividend Rate 4%; Convertible into 1,900
Santos Company provided the following information for 2022:
Common Stock Outstanding 100,000 shares
Convertible Preferred, Total Par Value $50,000; Dividend Rate 4%; Convertible into 1,900 Common Shares Dividend Declared & Paid
Stock Options A Exercise Price $12; Average Market Price $11; 3,000 Options
Stock Options B Exercise Price $7; Average Market Price $8; 4,000 Options
Convertible Bonds, 5%, Face Value $1,000,000; Convertible into 40,000 Common Shares
Tax Rate 30%
Net Income $120,000
Round to nearest two decimal places.
Part A: Complete all steps to determine EPS to be reported including:
1. Computation of Basic EPS
2. Individual dilution/anti-dilution with decision making
3. Ranking of potential dilutors
4. Step-by-step inclusion of individual dilutors to arrive at reportable EPS with decision making.
Part B: Partial Financial Statement Presentation of EPS for this company for the current year (2022) with a proper heading. Start your partial statement with Net Income.
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