Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following information is taken from the financial statements of TANTA Corporation for the year ended 12/31/2021: Common Stock: Outstanding since 1/1/2021 Issued 2/28/2021,

The following information is taken from the financial statements of TANTA Corporation for the year ended 12/31/2021: Common Stock: Outstanding since 1/1/2021 Issued 2/28/2021, 400,000 shares 36,000 shares 9/1/2021 Retired Shares of the common stock: (9,000) shares Preferred stock: 40,000 shares ($10.00 par value) non-convertible of 8% Cumulative preferred stock outstanding since 1/1/2021. Long Term Debt: $1,000,000 of 10% interest convertible bonds. Every $1,000 bond is convertible into 50 common shares and was issued in 2019. Other Information: .A 10% stock dividend was declared and distributes on July 1, 2021. . Net income after tax for 2021 was $900,000. Tax rate is 25%. Required: Calculate: A. Basic Earnings Per share B. Diluted Earnings Per share

Step by Step Solution

3.46 Rating (162 Votes )

There are 3 Steps involved in it

Step: 1

Answer A Basic Earnings Per Share EPS To calculate the Basic Earnings Per Share we need to determine ... 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

Fundamentals of Financial Management

Authors: Eugene F. Brigham, Joel F. Houston

Concise 6th Edition

324664559, 978-0324664553

More Books

Students also viewed these Finance questions

Question

As an officer for this bank, how would you handle this situation?

Answered: 1 week ago