Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

show work for k,l,m thanks need a better understanding this is the whole problem 8) Using the following information calculate basic and diluted earnings per

show work for k,l,m thanks need a better understanding image text in transcribed
image text in transcribed
this is the whole problem image text in transcribed
8) Using the following information calculate basic and diluted earnings per share: (12 Points) 8) Using the following information calculate basic and diluted earnings per share: (12 Points) a) Common stock shares issued as of January 1 of the current year 120,000. b) Issued 20,000 shares of common stock on July 1 of the current year. c) Issued 30,000 shares of common stock on October 1 of the current year. d) Issued 12,000 shares of common stock on December 1 of the current year. e) Total common stock shares issued as of December 31 of the current year are 182,000. f) Net Income is $3,502,500. 8) The tax rate is 20%. h) 4% Preferred Stock $50 par 20,000 shares issued. i) Each share of the Preferred stock can be converted into 3 shares of common stock. i) Face value of convertible bonds is $100,000. k) The bonds were issued at a discount of $15,000 and the effective rate is 2%. 1) Each $1,000 bond can be converted into 25 shares of stock. m) There are 10,000 options with a market price of $5 and an option price of $2

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

Step: 3

blur-text-image

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

Efficient Auditing Of Private Companies A Guide To Audit Planning Implementation And Control

Authors: The Institute Of Chartered Accountants

1st Edition

1841400432, 978-1841400433

More Books

Students also viewed these Accounting questions

Question

2. Identify conflict triggers in yourself and others

Answered: 1 week ago