Homework Answers
ANSWER:
step 1 Diluted EPS of street co.
| Street earnings after amortization [143000-14000] | 129000 |
| Shares | 30000 |
| Basic EPS [129000/30000] | 4.3 $ |
| Streets earning before bond interest [129000+27000$ interest saved if bond converted] | 156000 |
|
Shares after bond conversion [30000+10000 converted bonds] |
40000 |
| diluted EPS [156000/40000] | 3.9 $ |
bonds are dilutive as diluted EPS is less than basic EPS.
Step 2 Porter's share in diluted EPS of street co.
| Total shares of street co after conversion | 40000 |
| Porter's shares | 30000 |
| Porter's share [30000/40000] | 75% |
| Porter's earning share in street co.[156000*75%] | 117000 |
.step 3 diluted EPS
| Porter's Income | 183000 |
| Share in street co as above step 2 | 124800 |
| Interest saved after bond conversion | 35000 |
| diluted earnings [183000+117000+35000] | 335000 |
| Porter shares | 65000 |
| Bond converted | 8000 |
| Dilute shares [65000+8000] | 73000 |
ANSWER DILUTED EPS = 335000/73000
=4.59 $
_____________________________________________
If you have any query or any Explanation please ask me in the comment box, i am here to helps you.please give me positive rating.
*****************THANK YOU**************
Add Answer to:
Porter Corporation owns all 30,000 shares of the common stock of Street, Inc. Porter has 65,000...
Porter Corporation owns all 30,000 shares of the common stock of Street, Inc. Porter has 70,000...
Porter Corporation owns all 30,000 shares of the common stock of Street, Inc. Porter has 70,000 shares of its own common stock outstanding. During the current year, Porter earns net income (without any consideration of its investment in Street) of $227,000 while Street reports $159,000. Annual amortization of $15,000 is recognized each year on the consolidation worksheet based on acquisition- E date fair-value allocations. Both companies have convertible bonds outstanding. During the current year, bond-related interest expense (net of taxes)...
Porter Corporation owns all 26,000 shares of the common stock of Street, Inc. Porter has 60,000...
Porter Corporation owns all 26,000 shares of the common stock of Street, Inc. Porter has 60,000 shares of its own common stock outstanding. During the current year, Porter earns net income (without any consideration of its investment in Street) of $211,000 while Street reports $161,000. Annual amortization of $18,000 is recognized each year on the consolidation worksheet based on acquisition date fair-value allocations. Both companies have convertible bonds outstanding. During the current year, bond-related interest expense (net of taxes) is...
Porter Corporation owns all 35,000 shares of the common stock of Street, Inc. Porter has 70,000...
Porter Corporation owns all 35,000 shares of the common stock of Street, Inc. Porter has 70,000 shares of its own common stock outstanding. During the current year, Porter earns net income (without any consideration of its investment in Street) of $259,000 while Street reports $234,000. Annual amortization of $10,000 is recognized each year on the consolidation worksheet based on acquisition-date fair-value allocations. Both companies have convertible bonds outstanding. During the current year, bond-related interest expense (net of taxes) is $56,000...
please answer Porter Corporation owns all 34,000 shares of the common stock of Street, Inc. Porter...
please answer
Porter Corporation owns all 34,000 shares of the common stock of Street, Inc. Porter has 73,000 shares of its own common stock outstanding. During the current year, Porter earns net income (without any consideration of its investment in Street) of $251,000 while Street reports $206,000. Annual amortization of $19,000 is recognized each year on the consolidation worksheet based on acquisition-date fair-value allocations. Both companies have convertible bonds outstanding During the current year, bond-related interest expense (net of taxes)...
Porter Corporation owns all 30,000 shares of the common stock of Street, Inc. Porter has 65,000...
Porter Corporation owns all 30,000 shares of the common stock of Street, Inc. Porter has 65,000 shares of its own common stock outstanding. During the current year, Porter earns net income (without any consideration of its investment in Street) of $239,000 while Street reports $191,000. Annual amortization of $14,000 is recognized each year on the consolidation worksheet based on acquisition-date fair-value allocations. Both companies have convertible bonds outstanding. During the current year, bond-related interest expense (net of taxes) is $51,000...
Porter Corporation owns all 24,000 shares of the common stock of Street, Inc. Porter has 66,000...
Porter Corporation owns all 24,000 shares of the common stock of Street, Inc. Porter has 66,000 shares of its own common stock outstanding. During the current year, Porter earns net income (without any consideration of its investment in Street) of $222,000 while Street reports $121,000. Annual amortization of $13,000 is recognized each year on the consolidation worksheet based on acquisition-date fair-value allocations. Both companies have convertible bonds outstanding. During the current year, bond-related interest expense (net of taxes) is $30,000...
Primus, Inc., owns all outstanding stock of Sonston, Inc. For the current year, Primus reports net...
Primus, Inc., owns all outstanding stock of Sonston, Inc. For the current year, Primus reports net income (exclusive of any investment income) of $520,000. Primus has 50,000 shares of common stock outstanding. Sonston reports net income of $120,000 for the period with 40,000 shares of common stock outstanding. Sonston also has 10,000 stock warrants outstanding that allow the holder to acquire shares at $15.00 per share. The value of this stock was $30 per share throughout the year. Primus owns...
D owns all 30,000 shares of common stock of B. D has 60,000 shares of its...
D owns all 30,000 shares of common stock of B. D has 60,000 shares of its own common stock outstanding. During the year D earns $200,000 none included from B, while B reports $150,000. Annual amortization of $10,000 is recognized each year on the consolidated worksheet based on acquisition date fair values. Both companies have convertible bonds outstanding. During the current year bond related interest expense (net of taxes) is $32,000 for D and 24,000 for B. D’s bonds can...
Convertible Securities and Earnings per Share Percy Company has 15,000 shares of common stock outstanding during...
Convertible Securities and Earnings per Share Percy Company has 15,000 shares of common stock outstanding during all of 2016. It also has 2 convertible securities outstanding at the end of 2016. These are: 1. Convertible preferred stock: 1,000 shares of 9%, $100 par, preferred stock were issued in 2015 for $140 per share. Each share of preferred stock is convertible into 3.5 shares of common stock. The current dividends have been paid. To date, no preferred stock has been converted....
During 2015, Arbon Valley Company has 500,000 shares of par $1 common stock, 20,000 shares of...
During 2015, Arbon Valley Company has 500,000 shares of par $1 common stock, 20,000 shares of convertible, 4% cumulative preferred stock (par value is $50), $600,000 of 7% convertible bonds, $800,000 of 9% convertible bonds, and 120,000 stock options for employees to purchase shares of common stock for $20 per share. The preferred stock, bonds, and options were outstanding through the entire year. Dividends were not paid on the preferred stock during the year. The tax rate is 40%. Each...
Porter Corporation owns all 30,000 shares of the common stock of Street, Inc. Porter has 70,000 shares of its own common stock outstanding. During the current year, Porter earns net income (without any consideration of its investment in Street) of $227,000 while Street reports $159,000. Annual amortization of $15,000 is recognized each year on the consolidation worksheet based on acquisition- E date fair-value allocations. Both companies have convertible bonds outstanding. During the current year, bond-related interest expense (net of taxes)...
Porter Corporation owns all 26,000 shares of the common stock of Street, Inc. Porter has 60,000 shares of its own common stock outstanding. During the current year, Porter earns net income (without any consideration of its investment in Street) of $211,000 while Street reports $161,000. Annual amortization of $18,000 is recognized each year on the consolidation worksheet based on acquisition date fair-value allocations. Both companies have convertible bonds outstanding. During the current year, bond-related interest expense (net of taxes) is...
Porter Corporation owns all 35,000 shares of the common stock of Street, Inc. Porter has 70,000 shares of its own common stock outstanding. During the current year, Porter earns net income (without any consideration of its investment in Street) of $259,000 while Street reports $234,000. Annual amortization of $10,000 is recognized each year on the consolidation worksheet based on acquisition-date fair-value allocations. Both companies have convertible bonds outstanding. During the current year, bond-related interest expense (net of taxes) is $56,000...
please answer
Porter Corporation owns all 34,000 shares of the common stock of Street, Inc. Porter has 73,000 shares of its own common stock outstanding. During the current year, Porter earns net income (without any consideration of its investment in Street) of $251,000 while Street reports $206,000. Annual amortization of $19,000 is recognized each year on the consolidation worksheet based on acquisition-date fair-value allocations. Both companies have convertible bonds outstanding During the current year, bond-related interest expense (net of taxes)...
Primus, Inc., owns all outstanding stock of Sonston, Inc. For the current year, Primus reports net income (exclusive of any investment income) of $520,000. Primus has 50,000 shares of common stock outstanding. Sonston reports net income of $120,000 for the period with 40,000 shares of common stock outstanding. Sonston also has 10,000 stock warrants outstanding that allow the holder to acquire shares at $15.00 per share. The value of this stock was $30 per share throughout the year. Primus owns...
Convertible Securities and Earnings per Share Percy Company has 15,000 shares of common stock outstanding during all of 2016. It also has 2 convertible securities outstanding at the end of 2016. These are: 1. Convertible preferred stock: 1,000 shares of 9%, $100 par, preferred stock were issued in 2015 for $140 per share. Each share of preferred stock is convertible into 3.5 shares of common stock. The current dividends have been paid. To date, no preferred stock has been converted....
Most questions answered within 3 hours.
-
In
the last 3 months, mike never knows when he is going to get his
allowance...
asked 21 minutes ago -
Is Ca(OH)2 a Bronsted base, Lewis base, or both? Why?
asked 11 minutes ago -
1A- Why don’t voters complain about U.S. tariffs on imported
sugar?
Because sugar is only a...
asked 20 minutes ago -
Cash Payback Period
Primera Banco is evaluating two capital investment proposals for
a drive-up ATM kiosk,...
asked 18 minutes ago -
Create a button in Swift (Xcode) that will create a charge,
create a charge using Stripe's...
asked 18 minutes ago -
The reaction rate of CO and NO2 in the reaction
CO(g) + NO2(g) → CO2(g) +...
asked 20 minutes ago -
Imagine that a chemist puts 6.40 mol each of
C3H8 and O2 in a 1.00-L container...
asked 37 minutes ago -
How much money should be invested today in order to have $8340
at the end of...
asked 41 minutes ago -
You are conducting research for a hospital and issue a survey to
patients.
Based on the...
asked 41 minutes ago -
What might be a negative mutation that would hinder the
bug population?
asked 51 minutes ago -
A company just paid a dividend of $1.50 per share. The consensus
forecast of financial analysts...
asked 46 minutes ago -
A mass of 0.50 g of an unknown acid HA required 20.0 mL of 0.25
M...
asked 56 minutes ago