Basic EPS | $ 4.51 |
Diluted EPS | $ 4.46 |
Basic EPS | 9650000/2140000 |
$ 4.51 | |
Interest Expense | (4100000*7%)+((1-0.96)*4100000/10) |
$ 303,400.00 | |
Interest Expense Net of Tax | 303400*(1-0.35) |
$ 197,210.00 | |
Net Income after adjustment | 9650000+197210 |
$ 9,847,210.00 | |
Shares Converted | 4100000/1000*17 |
69,700 | |
Diluted EPS | 9847210/(2140000+69700) |
$4.46 |
Exercise 16-24 The Headland Corporation issued 10-year, $4,100,000 par, 7% callable convertible subordinated debentures on January...
Exercise 16-24 The Headland Corporation issued 10-year, $4,100,000 par, 7% callable convertible subordinated debentures on January 2, 2017. The bonds have a par value of $1,000, with interest payable annually. The current conversion ratio is 15:1, and in 2 years it will increase to 17:1. At the date of issue, the bonds were sold at 96. Bond discount is amortized on a straight-line basis. Headland's effective tax was 35%. Net income in 2017 was $9,650,000, and the company had 2,140,000...
Exercise 16-24 The Vaughn Corporation issued 10-year, $4,430,000 par, 7% callable convertible subordinated debentures on January 2, 2017. 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 19:1. At the date of issue, the bonds were sold at 96. Bond discount is amortized on a straight-line basis. Vaughn's effective tax was 35%. Net income in 2017 was $9,050,000, and the company had 1,885,000...
The Ivanhoe Corporation issued 10-year, $5,470,000 par, 7% callable convertible subordinated debentures on January 2, 2017. The bonds have a par value of $1,000, with interest payable annually. The current conversion ratio is 13:1, and in 2 years it will increase to 18:1. At the date of issue, the bonds were sold at 96. Bond discount is amortized on a straight-line basis. Ivanhoe’s effective tax was 35%. Net income in 2017 was $9,350,000, and the company had 1,820,000 shares outstanding...
The Sweet Corporation issued 10-year, $4,890,000 par, 7% callable convertible subordinated debentures on January 2, 2017. 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 16:1. At the date of issue, the bonds were sold at 96. Bond discount is amortized on a straight-line basis. Sweet’s effective tax was 35%. Net income in 2017 was $8,550,000, and the company had 1,980,000 shares outstanding...
The Crane Corporation issued 10-year 54,100,000 par, 7% callable convertible subordinated debentures on January 2, 2020. The bonds have a par value of $1,000 with interest payable anually. The current conversion ratio is 15-1, and in 2 years it will increase to 17:1. At the date of issue, the bonds were sold at 96. Bond discount is amortized on a straight-line basis. Crane's effective tax was 20% Net Income in 2020 was $9,650,000, and the company had 2.140.000 shares outstanding...
The Skysong Corporation issued 10-year, $5,270,000 par, 6% callable convertible subordinated debentures on January 2, 2017. The bonds have a par value of $1,000, with interest payable annually. The current conversion ratio is 13:1, and in 2 years it will increase to 19:1. At the date of issue, the bonds were sold at 96. Bond discount is amortized on a straight-line basis. Skysong’s effective tax was 35%. Net income in 2017 was $8,800,000, and the company had 1,985,000 shares outstanding...
Exercise 16-24 The Bridgeport Corporation issued 10 year $5,460.000 par a convertible subordinated debentures on January 2, 2017. The bonds have a value of $1.000 hinterest payable annually. The current conversion ratio is 14:1, and in 2 years w increase to 16:1. At the date of the bonds were sold and discount is more on asrah line basis. Bridgeport's effective tax was 35%. Net income in 2017 was 18.000.000, and the company had 2,185,000 shares outstanding during the entire year...
Exercise 16-24 a Your answer is partially correct. Try again. The Marin Corporation issued 10-year, $5,060,000 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 99. Bond discount is amortized on a straight-line basis. Marin's effective tax was 20%. Net income in...
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...
G1 Corp. issued $50 million subordinated convertible debentures on January 1, 2017 at face value. The debentures pay 5% interest annually and are convertible into 50 common shares for each $1,000 of the bond's face value. At maturity, December 31,2018, G1 Corp. has the option of issuing common shares to redeem the bonds instead of paying cash. REQUIRED: Prepare all the journal entries associated with the bond for the year ended December 31, 2018.