Bridger Bridger Stamping began the current year with 420,000 common shares outstanding and issued an additional 360,000 shares on September 1. The firm has
$11,300,000, 1.5% convertible bonds on June 30 (i.e.,$169,500 coupon interest annually), which are convertible into 326,000 shares of common stock. The firm issued the bonds at par and did not convert any during the current year. It also had $1,160,000 par value, 5% nonconvertible, noncumulative preferred stock outstanding for the full year and declared dividends for the current year. The company is subject to a 40% effective tax rate and net income is $4,400,000. Based on this information, compute basic and diluted earnings per share for the current year. Calculate the basic earnings per share (EPS) for the current year. (Round the EPS to the nearest cent, $X.XX.)
Basic EPS for the current year $2.08 (wrong answer) $8.04 (Correct answer)
Diluted EPS for the current year is $6.25
Bridger Bridger Stamping began the current year with 420,000 common shares outstanding and issued an additional...
Convertible Preferred Stock, Convertible Bonds, and EPS Francis Company has 12,000 shares of common stock outstanding at the beginning of 2016. Francis issued 1,500 additional shares on May 1 and 1,000 additional shares on September 30. It also has two convertible securities outstanding at the end of 2016. These are: Convertible preferred stock: 1,250 shares of 9.0%, $50 par, preferred stock were issued on January 2, 2013, for $60 per share. Each share of preferred stock is convertible into 3...
Ahnberg Corporation had 820.000 shares of common stock issued and outstanding at January 1, No common shares were issued during the year, but on January 1, Ahnberg issued 440,000 shares of convertible preferred stock. The preferred shares are convertible Into 880.000 shares of common stock. During the year Ahnberg paid $264,000 cash dividends on the preferred stock. Net Income was $3.790,000 What were Ahnberg's basic and diluted earnings per share for the year? (Round your answers to 2 decimal places.)...
Throughout 2014, H had 3,770,000 shares of common stock issued and outstanding and 100,000 shares of 6%, $50 par value convertible preferred stock issued outstanding. Each share of preferred stock can be converted into 4 shares of B’s common stock. H’s net income for 2014 was $9,420,000. During 2014 H paid $300,000 of preferred dividends. H’s income tax rate is 20%. During the entire year ending 12-31-14, H had 400,000 outstanding and exercisable employee stock options that were granted to...
Oriole Corporation had net income for the current fiscal year of $600,000, and common shares outstanding of 96,000. There were no changes to Oriole’s common shares during the year. Oriole also had outstanding a $1,000,000, 9% bond sold in a previous year that was convertible to 66,000 common shares. In addition, Oriole sold a new bond on October 1 of the current year. The new bond was a $1,000,000, 11% bond, convertible to 60,400 shares. Oriole was subject to a...
XYZ Company had 200,000 shares of common stock outstanding on December 31, 2017. On July 1, 2018, XYZ issued an additional 45,000 shares for cash. On January 1, 2018, XYZ issued 15,000 shares of convertible preferred stock. The preferred stock had a par value of $100 per share and paid a 5% dividend. Each share of preferred stock is convertible into 8 shares of common. During 2018 XYZ paid the regular annual dividend on the preferred and common stock. Net...
Ignatius Corporation had 13 million shares of common stock outstanding during the current calendar year. It issued 24,000, $1,000, convertible bonds on January 1. Each bond is convertible into 50 shares of common stock. The bonds were issued at face amount and pay interest semiannually at an annual rate of 12%. On June 30, Ignatius issued 240,000 shares of $100 par 6% cumulative preferred stock. Dividends are declared and paid quarterly. Ignatius has an effective tax rate of 40%. Ignatius...
E16.25 (LO5) (EPS wit Company issued 10-year. S: 15 shares of Crocker ce 20%. The company had 100.000 sh s! (EPS with Convertible Bonds and Preferred Stock) On January 1, 2020, Crocker issued 10-year, $2,000,000 face value, 6% bonds, at par. Each $1,000 bond is convertible into of Crocker common stock. Crocker's net income in 2020 was $400,000, and its tax rate was company had 100,000 shares of common stock outstanding throughout 2020. None of the bonds were converted in...
On December 31, 2017, Berclair Inc. had 540 million shares of common stock and 4 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. On March 1, 2018, Berclair purchased 24 million shares of its common stock as treasury stock. Berclair issued a 5% common stock dividend on July 1, 2018. Four million treasury shares were sold on October 1. Net income for the year ended December 31, 2018, was $900 million. The income tax rate...
can someone please assist with these questions Chapter 19-Earnings per Share 89. FGH had 5,000 common shares outstanding on December 31, 20x2. An additional 1,000 common shares were issued on April 1, 20x3, and 500 more on July 1, 20x3. On October 1, 20x3, FGH issued 10, $1,000 maturity value, 7 percent convertible bonds. Each bond is convertible into 40 common shares. No bonds were converted into common shares in 20x3. What was the aumber of shares that should be...
On January 1, 2018 Tonge Industries had outstanding 660,000 common shares ($1 par) that originally sold for $30 per share, and 9,000 shares of 10% cumulative preferred stock ($100 par), convertible into 90,000 common shares. On October 1, 2018, Tonge sold and issued an additional 16,000 shares of common stock at $33. At December 31, 2018, there were 25,000 incentive stock options outstanding, issued in 2017, and exercisable after one year for 25,000 shares of common stock at an exercise...