Question
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 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: 470,000 common shares, issued for $5.85 million, were outstanding. 70,000 preferred shares bearing cumulative dividend rights of $25 per year. $1.20 million (par value) of 7% 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 $90,000. Outstanding options for 60,000 common shares at a price of $25 per share. The average market value of common shares during the period was $30. On 30 September 20X6, Willowdale issued an additional 120,000 common shares for $1.70 million cash. Willowdale reported earnings of $3.50 million for the year ended 31 December 20X6 net of tax of 30%. Required: Calculate the basic and diluted earnings per share figures for 20X6. (Round your answers to 2 decimal places.)
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