Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The shareholders' equity of Cameron Corp. as of 31 December 206, the end of the current fiscal year, is as follows: Additional information: On 1

image text in transcribed

The shareholders' equity of Cameron Corp. as of 31 December 206, the end of the current fiscal year, is as follows: Additional information: On 1 July 206,156,000 preferred shares were converted to common shares at the rate of 4 -for- 1 . - During 20X6, Cameron had convertible subordinated debentures outstanding with a face value of $4,030,000. The debentures are due in 202, at which time they may be converted to common shares or repaid at the option of the holder. The conversion rate is 12 common shares for each $100 debenture. Interest expense of $178,000 was recorded in 206. - The convertible preferred shares had been issued in 20X0. Quarterly dividends, on 31 March, 30 June, 30 September, and 31 December, have been regularly declared. - The company's 206 net earnings were $2,295,000, after tax at 30%. Common shares traded for an average price of $21, stable in each quarter of the year. - Cameron had certain employee stock options outstanding all year. The options were to purchase 570,000 common shares at a price of \$17 per share. The options become exercisable in 203. - Cameron had another 103,000 employee stock options outstanding on 1 January 20X6, at an exercise price of $25. They expired on 30 June 206. Required: 1. Calculate the basic EPS. (Do not round intermediate calculations. Round your answer to 2 decimal 2. Calculate the Individual effects for preferred shares (converted), preferred shares, (unconverted) and debentures. (Do not round intermediate calculations. Round your answers to 2 decimal places.) 3. Calculate the Diluted EPS. (Do not round intermediate calculations. Round your answer to 2 decimal

Step by Step Solution

There are 3 Steps involved in it

Step: 1

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

Introduction To Managerial Accounting

Authors: Peter Brewer, Ray Garrison, Eric Noreen

4th Edition

0073379352, 9780073379357

More Books

Students also viewed these Accounting questions

Question

What is the least squares estimator of ?????

Answered: 1 week ago