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The Cookie Company owns 100% (2000 of the 2000 shares of Donut Company. Information for Cookie and Donut are as follows: Shares common stock: Cookie
The Cookie Company owns 100% (2000 of the 2000 shares of Donut Company. Information for Cookie and Donut are as follows:
Shares common stock: Cookie 40000 Donut 2000
Shares of 20% $50 par preferred stock Cookie 0 Donut 100
Income after taxes but before dividends: Cookie $100,000 Donut $ 19,000
Situation a: Donuts preferred stock in non-convertible cumulative
Calculate Cookies earnings per share
Situation b: Donuts each share of Donuts preferred stock can be converted into 4 shares of common stock
Calculate Cookies earnings per share.
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