Question
The following selected information is for the Parson Corp. on Dec. 31, 2000 [at the end of 2000]: 10% Convertible Bonds, due on Jan. 1,
The following selected information is for the Parson Corp. on Dec. 31, 2000 [at the end of 2000]: 10% Convertible Bonds, due on Jan. 1, 2008, [each $1,000 bond is convertible into 30 shares of common stock] $10,000,000 10% Noncumulative Preferred Stock, $50 par, 30,000 shares authorized; 10,000 shares issued & outstanding 500,000 8% Cumulative Convertible Preferred Stock, $75 par, 50,000 shares authorized; 8,000 shares issued & outstanding [each share of preferred stock is convertible into five shares of common stock] 600,000 Common Stock, $6 par, 800,000 shares authorized; 240,000 shares issued and outstanding 1,440,000 Additional Information: (a) During 2000, Parson reported $884,000 of net income, paid common shareholders a dividend of $1.00 per share, and operated in the 40% tax bracket
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