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Would you please help verify the basic and diluted EPS to this questions? There has been several answers posted and they were all wrong. Riggs
Would you please help verify the basic and diluted EPS to this questions? There has been several answers posted and they were all wrong.
Riggs Corporation has the following balance sheet information at December 31, 2016 Current liabilities Convertible bonds ($1,000 par, 5%) Common stock ($1 par, 300,000 shares issued Additional paid-in capital Retained earnings Treasury stock (43,000 shares) Total liabilities and shareholders' equity $ 800,900 2,000,000 300,000 2,100,000 3,230,000 1,161,900 $7,269,900 The convertible bonds were issued at par in 2014 and are convertible into Riggs's common stock at a ratio of 15 shares of stock to 1 bond. In its December 31, 2016 annual report, Riggs reported 125,000 exercisable qualified stock options. Each option allows the holder to acquire one share of common stock for $19 per share. All of the options were outstanding at the end of 2017. On October 1, 2017, Riggs purchased 32,000 shares of treasury stock for $50 per share. The average market price of the common stock during 2017 was $50 per share, and the December 31, 2017, price was $56. Riggs's net income for the year ended December 31, 2017, was $825,000, and its tax rate was 35% Required: 1. Compute Riggs's basic EPS for the year ended December 31, 2017 2. Compute Riggs's diluted EPS for the year ended December 31, 2017. There are no antidilutive securitiesStep by Step Solution
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