The assumed conversion of convertible debt and preferred stock in diluted earnings per share calculations affects...
The assumed conversion of convertible debt and preferred stock in diluted earnings per share calculations affects
Select one:
a. neither the numerator nor the denominator.
b. the denominator only.
c. both the numerator and denominator.
d. the numerator only.
Homework Answers
| Option C is the answer | |
| Both Numerator and Denominator get affected by the conversion of convertible debt and preferred stock while calculated the diluted EPS |
Comment if you face any issues
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The assumed conversion of convertible debt and preferred stock
in diluted earnings per share calculations affects...
Chapter 16: Earnings Per Share Calculations Assignment #1 Basic Earnings Per Share Example 1: Convertible Bonds...
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In the determination of the diluted earnings per share, convertible securities are Select one: a. included...
In the determination of the diluted earnings per share, convertible securities are Select one: a. included if they are antidilutive. b. included if they are dilutive. c. included whether they are dilutive or not. d. not included.
In determining basic earnings per share, dividends on convertible cumulative preferred stock should be Select one:...
In determining basic earnings per share, dividends on convertible cumulative preferred stock should be Select one: O a. disregarded. O b. deducted from net income whether declared or not. O c. added back to net income whether declared or not. O d. deducted from net income only if declared.
Clearly label the basic and diluted numerator / denominator = earnings per share similarly to the...
Clearly label the basic and diluted numerator / denominator =
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On December 31, 2020, Berclair Inc. had 520 million shares of common stock and 3 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. On March 1, 2021, Berclair purchased 24 million shares of its common stock as treasury stock. Berclair issued a 5% common stock dividend on July 1, 2021. Four million treasury shares...
Exercise 19-21 EPS; convertible preferred stock; convertible bonds; order of entry [LO19-7, 19-9] Information from the...
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Exercise 19-21 EPS; convertible preferred stock; convertible bonds; order of entry [LO19-7, 19-9) Information from...
Exercise 19-21 EPS; convertible preferred stock; convertible bonds; order of entry [LO19-7, 19-9) Information from the financial statements of Ames Fabricators, Inc., included the following: December 31 2018 2017 100,000 100,000 Common shares Convertible preferred shares (convertible into 68,000 shares of common) 10% convertible bonds (convertible into 20,000 shares of common) 33,600 33,600 $1,800,000 $1,000,000 Ames's net income for the year ended December 31, 2018. is $860,000. The income tax rate is 40%. Ames paid dividends of $5 per share...
Please show calculations ( Tuuupicu) Ok E16.24 (LO 5) (EPS with Convertible Bonds and Preferred Stock)...
Please show calculations
( Tuuupicu) Ok E16.24 (LO 5) (EPS with Convertible Bonds and Preferred Stock) The Simon Corporation issued 10-year, $5,000,000 par, 7% callable convertible subordinated debentures on January 2, 2020. The bonds have a par value of $1,000, with interest payable annually. The current conversion ratio is 14:1, and in 2 years it will increase to 18:1. At the date of issue, the bonds were sold at 98. Bond discount is amortized on a straight-line basis. Simon's effective...
Find the conversion value of a convertible preferred stock that carries a conversion ratio of 1.8,...
Find the conversion value of a convertible preferred stock that carries a conversion ratio of 1.8, given that the market price of the underlying common stock is $32.86 a share. Would there be any conversion premium if the convertible preferred were selling at $73.82 a share? If so, how much in dollar and percentage terms)? Also, explain the concept of conversion parity, and then find the conversion party of this issue given that the preferred trades at 573.82 per share....
6) When calculating diluted earnings per share, the effect of stock options: A) Will increase the...
6) When calculating diluted earnings per share, the effect of stock options: A) Will increase the numerator, but never effect the denominator. B) Is included if antidilutive. C) Is included if dilutive.. D) Will never effect diluted earnings per share and can be ignored. DDIOHO ntla n 7) Dulce Corporation had 200,000 shares current year. There were also fully vested options for 10,000 shares of common stock with an exercise price of $20. The market price of the common stock...
Accounting 327 – In-class activity, April 7, 2020 – Diluted Earnings Per Share Grassland Company had...
Accounting 327 – In-class activity, April 7, 2020 – Diluted Earnings Per Share Grassland Company had 200,000 shares of common stock outstanding on January 1, 2018. On September 30, 2018, Grassland sold 80,000 shares of common stock for cash. Grassland also had 40,000 shares of $10 par, 10%, noncumulative, convertible preferred stock outstanding throughout 2018. Each share is convertible into one share of common stock. Grassland also had $500,000 of 8% bonds outstanding throughout 2018. Each $1,000 bond is convertible...
Chapter 16: Earnings Per Share Calculations Assignment #1 Basic Earnings Per Share Example 1: Convertible Bonds Net Income: Bonds Payable: Stated Rate: 1860 75000 0.08 Diluted Earning Per Share Tax Rate: 0.4 AVG number of Share Outstanding: 2000 Additional Sahres after Conversion 7500 Basic Earnings Per Share Diluted Earning Per Share Example 2: Convertible Preferred Staocks Net Income: 1200000 Preferred Stocks: 4000000 Dividend Rate: 0.06 Tax Rate: 0.4 AVG number of Share Outstanding: 600000 Additional Sahres after Conversion 200000 Basic...
In determining basic earnings per share, dividends on convertible cumulative preferred stock should be Select one: O a. disregarded. O b. deducted from net income whether declared or not. O c. added back to net income whether declared or not. O d. deducted from net income only if declared.
Clearly label the basic and diluted numerator / denominator =
earnings per share similarly to the format as the chart below.
On December 31, 2020, Berclair Inc. had 520 million shares of common stock and 3 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. On March 1, 2021, Berclair purchased 24 million shares of its common stock as treasury stock. Berclair issued a 5% common stock dividend on July 1, 2021. Four million treasury shares...
Exercise 19-21 EPS; convertible preferred stock; convertible bonds; order of entry [LO19-7, 19-9] Information from the financial statements of Ames Fabricators, Inc., included the following: December 31 2018 2017 100,000 100,000 Common shares Convertible preferred shares (convertible into 34,000 shares of common) 10% convertible bonds (convertible into 20,000 shares of common) 13,200 13,200 $1,000,000 $1,000,000 Ames's net income for the year ended December 31, 2018, is $520,000. The income tax rate is 40%. Ames paid dividends of $5 per share...
Exercise 19-21 EPS; convertible preferred stock; convertible bonds; order of entry [LO19-7, 19-9) Information from the financial statements of Ames Fabricators, Inc., included the following: December 31 2018 2017 100,000 100,000 Common shares Convertible preferred shares (convertible into 68,000 shares of common) 10% convertible bonds (convertible into 20,000 shares of common) 33,600 33,600 $1,800,000 $1,000,000 Ames's net income for the year ended December 31, 2018. is $860,000. The income tax rate is 40%. Ames paid dividends of $5 per share...
Please show calculations
( Tuuupicu) Ok E16.24 (LO 5) (EPS with Convertible Bonds and Preferred Stock) The Simon Corporation issued 10-year, $5,000,000 par, 7% callable convertible subordinated debentures on January 2, 2020. The bonds have a par value of $1,000, with interest payable annually. The current conversion ratio is 14:1, and in 2 years it will increase to 18:1. At the date of issue, the bonds were sold at 98. Bond discount is amortized on a straight-line basis. Simon's effective...
Find the conversion value of a convertible preferred stock that carries a conversion ratio of 1.8, given that the market price of the underlying common stock is $32.86 a share. Would there be any conversion premium if the convertible preferred were selling at $73.82 a share? If so, how much in dollar and percentage terms)? Also, explain the concept of conversion parity, and then find the conversion party of this issue given that the preferred trades at 573.82 per share....
6) When calculating diluted earnings per share, the effect of stock options: A) Will increase the numerator, but never effect the denominator. B) Is included if antidilutive. C) Is included if dilutive.. D) Will never effect diluted earnings per share and can be ignored. DDIOHO ntla n 7) Dulce Corporation had 200,000 shares current year. There were also fully vested options for 10,000 shares of common stock with an exercise price of $20. The market price of the common stock...
Accounting 327 – In-class activity, April 7, 2020 – Diluted Earnings Per Share Grassland Company had 200,000 shares of common stock outstanding on January 1, 2018. On September 30, 2018, Grassland sold 80,000 shares of common stock for cash. Grassland also had 40,000 shares of $10 par, 10%, noncumulative, convertible preferred stock outstanding throughout 2018. Each share is convertible into one share of common stock. Grassland also had $500,000 of 8% bonds outstanding throughout 2018. Each $1,000 bond is convertible...
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