Question
Stock EPS is my weakness and I have a difficult time calculating it. Below I have given the data needed to figure out the remaining
Stock EPS is my weakness and I have a difficult time calculating it. Below I have given the data needed to figure out the remaining Earnings per Share Statement which is also included. I have figured the Basic EPS but the others are just killing me. I am looking for help where the question marks are. I have tried but my numbers just are not working right. Please Help!
Balance Sheet Info pertaining to bonds and stocks:
Current Portion of Bonds Payable 1,000,000.00
Preferred Stock - (10,000 authorized,5,000 issued, 10%, $100 par value) - $500,000.00
Common Stock - (2,000,000 sharesauthorized, 1,750,000 issued, $1 par) $1,750,000.00
Net Income $12,428,782.26
Less: Preferred Dividends $50,000.00
Earnings Available to Common Shareholders $12,378,782.26
Common Shares Outstanding 1,750,000
Basic EPS $7.07
If all preferred shares are converted:
Net Income $12,428,782.26
Additional Common Shares ??
Common Shares Outstanding after conversion ??
EPS if preferred shares converted ??
Preferred shares are antidilutive ??
If all bonds are converted:
Net Income $12,428,782.26
Less: Preferred Dividends $50,000.00
Add back interest on bonds, net of income tax ??
Earnings Available to Common Shareholders ??
Additional Common Shares ??
Common Shares Outstanding after conversion ??
Fully diluted EPS ??
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