Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.

image text in transcribed

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 securities

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

Human And Social Audit

Authors: N P Agarwal

1st Edition

8176113980, 978-8176113984

More Books

Students also viewed these Accounting questions