The following information relates to Willowdale Ltd.s financial statements for the year ended 31 December 20X6: On 1 January 20X6, Willowdales capital structure consisted of the following: 462,000 common shares, issued for $5.81 million, were outstanding. 62,000 preferred shares bearing cumulative dividend rights of $17 per year. $1.12 million (par value) of 5% convertible bonds ($1,000 face value), with interest payable on 30 June and 31 December of each year. Each $1,000 bond is convertible into 65 common shares, at the option of the holder, at any time before 31 December 20X11. Interest expensed on the convertible bonds was $86,000. Outstanding options for 56,000 common shares at a price of $17 per share. The average market value of common shares during the period was $20. On 30 September 20X6, Willowdale issued an additional 112,000 common shares for $1.62 million cash. Willowdale reported earnings of $2.70 million for the year ended 31 December 20X6 net of tax of 25%.

Required: Calculate the basic and diluted earnings per share figures for 20X6. (Round your answers to 2 decimal places.)

The following information relates to Willowdale Ltd.s financial statements for the year ended 31 December 20X6:

1. On 1 January 20X6, Willowdales capital structure consisted of the following:
   • 462,000 common shares, issued for $5.81 million, were outstanding.
   • 62,000 preferred shares bearing cumulative dividend rights of $17 per year.
   • $1.12 million (par value) of 5% convertible bonds ($1,000 face value), with interest payable on 30 June and 31 December of each year. Each $1,000 bond is convertible into 65 common shares, at the option of the holder, at any time before 31 December 20X11. Interest expensed on the convertible bonds was $86,000.
   • Outstanding options for 56,000 common shares at a price of $17 per share. The average market value of common shares during the period was $20.
2. On 30 September 20X6, Willowdale issued an additional 112,000 common shares for $1.62 million cash.
3. Willowdale reported earnings of $2.70 million for the year ended 31 December 20X6 net of tax of 25%.

Required: Calculate the basic and diluted earnings per share figures for 20X6. (Round your answers to 2 decimal places.)

Answer rating: 100% (QA)

Solution To calculate the basic and diluted earnings per share EPS for Willowdale Ltd for the year ended 31 December 20X6 we need to follow these step... View the full answer