Question
The following information is available for Evelynn Company: Net income $1,200,000 7% Convertible bonds issued at par. each bond is convertible to 30 shares of
The following information is available for Evelynn Company:
Net income $1,200,000
7% Convertible bonds issued at par.
each bond is convertible to 30 shares of
common stock $2,000,000
6% Convertible preferred stock, at par, each
share is convertible to 3 shares of common stock $4,000,000
Options outstanding to purchase 75,000 shares
at $20 per share
Common stock, $10 par $6,000,000
Tax rate 20%
Average market price of common stock $25 per share
There were no changes in shares, bonds, or options outstanding during the year. Compute basic and fully diluted earnings per share showing all computations.
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