$3.64 is the correct answer, but I am very confused how to solve. Could someone please help? Thank you.
Homework Answers
Basic earning per share = (800000-50000)/200000 = 3.75
Diluted earning per share = Adjusted net income/adjusted shares
Adjusted shares = 200000+20000+1000000*10/1000 = 230000
Adjusted net income = 800000+(1000000*10%*70%) = 870000
If Both bonds and preferred stock converted then diluted earning per share = 870000/230000 = 3.78
If Bonds converted then = (800000-50000+70000)/210000 = 3.90
If preferred share converted = 800000/220000 = 3.64
So answer is a) $3.64
Add Answer to:
$3.64 is the correct answer, but I am very confused how to
solve. Could someone please...
Hello, the answer is $3.64 Can someone please explain this step by step? I have tried...
Hello, the answer is $3.64
Can someone please explain this step by step? I have tried this
problem several times with no luck.
Jostens Co. had 200,000 shares of common stock, 20,000 shares of convertible preferred stock, and $1,000,000 of 10% bonds outstanding during 2017. The preferred stock is convertible into 20,000 shares of common stock. During 2017, Jostens paid dividends of $1.20 per share on its common stock and $2.50 per share on its preferred stock. Each $1,000 bond...
Information concerning the capital structure of the Petrock Corporation is as follows: Common stock Convertible preferred...
Information concerning the capital structure of the Petrock Corporation is as follows: Common stock Convertible preferred stock 8%, $1,000 par, convertible bonds December 31 2016 2017 90,000 shares 90,000 shares 10,000 shares 10,000 shares $1,000,000 $1,000,000 During 2017, Petrock paid dividends of $1 per share on its common stock and $2.40 per share on its preferred stock. The preferred stock is convertible into 20,000 shares of common stock. The 8% convertible bonds are convertible into 30,000 shares of common stock....
Please help. Information from the financial statements of Ames Fabricators, Inc., included the following: December 31...
Please help.
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 42,000 shares of common) 10% convertible bonds (convertible into 20,000 shares of common) 18,000 18,000 $1,000,000 $1,000,000 Ames's net income for the year ended December 31, 2018, is $600,000. The income tax rate is 40%. Ames paid dividends of $5 per share on its preferred stock during 2018. Required: Compute basic and diluted...
babam Q3 (15 marks). robots Information concerning the capital structure of the Acme Corporation is as...
babam Q3 (15 marks). robots Information concerning the capital structure of the Acme Corporation is as follows: 151 S o us December 31st 2016 2017 100,000 100,000 Common stock (# of shares) Convertible preferred stock (# of shares) 8% convertible bonds 20,000 20,000 $1,000,000 $1,000,000 During 2017 Acme paid dividends of $1 per share on its C/S and $1.40 per share on preferred stock (P/S). The P/S is convertible into 40,000 shares of C/S. The 6% convertible bonds are convertible...
Information from the financial statements of Ames Fabricators, Inc., included the following: December 31 2018...
Information from the financial statements of Ames Fabricators, Inc., included the following: December 31 2018 2017 Common shares 100,000 100,000 Convertible preferred shares (convertible into 38,000 shares of common) 15,600 15,600 10% convertible bonds (convertible into 20,000 shares of common) $ 1,000,000 $ 1,000,000 Ames’s net income for the year ended December 31, 2018, is $560,000. The income tax rate is 40%. Ames paid dividends of $5 per share on its preferred stock during 2018. Required: Compute basic and...
Exercise 19-21 EPS; convertible preferred stock; convertible bonds; order of entry [LO19-7, 19-9] Information from the...
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...
Information from the financial statements of Ames Fabricators, Inc., included the following: December 31 2018 2017...
Information from the financial statements of Ames Fabricators, Inc., included the following: December 31 2018 2017 Common shares 100,000 100,000 Convertible preferred shares (convertible into 42,000 shares of common) 18,000 18,000 106 convertible bonds (convertible into 20,000 shares of common) $1,000,000 $1,000,000 Ames's net income for the year ended December 31, 2018, is $600,000. The income tax rate is 40%. Ames paid dividends of $5 per share on its preferred stock during 2018 Required: Compute basic and diluted earnings per...
Information from the financial statements of Ames Fabricators, Inc., included the following: December 31 2018...
Information from the financial statements of Ames Fabricators, Inc., included the following: December 31 2018 2017 Common shares 100,000 100,000 Convertible preferred shares (convertible into 46,000 shares of common) 20,400 20,400 10% convertible bonds (convertible into 20,000 shares of common) $ 1,000,000 $ 1,000,000 Ames’s net income for the year ended December 31, 2018, is $640,000. The income tax rate is 40%. Ames paid dividends of $5 per share on its preferred stock during 2018. Required: Compute basic and...
Information from the financial statements of Ames Fabricators, Inc., included the following: December 31 2018...
Information from the financial statements of Ames Fabricators, Inc., included the following: December 31 2018 2017 Common shares 100,000 100,000 Convertible preferred shares (convertible into 46,000 shares of common) 20,400 20,400 10% convertible bonds (convertible into 20,000 shares of common) $ 1,000,000 $ 1,000,000 Ames’s net income for the year ended December 31, 2018, is $640,000. The income tax rate is 40%. Ames paid dividends of $5 per share on its preferred stock during 2018. Required: Compute basic and...
Villanueva Corp. had 200,000 shares of common stock, 20,000 shares of convertible preferred stock, and $1,000,000...
Villanueva Corp. had 200,000 shares of common stock, 20,000 shares of convertible preferred stock, and $1,000,000 of 5% convertible bonds outstanding during 2020. The preferred stock is convertible into 40,000 shares of common stock. During 2020, Villanueva paid dividends of $1.20 per share on the common stock and $4 per share on the preferred stock. The bonds were originally issued at par and each $1,000 bond is convertible into 45 shares of common stock. Villanueva’s net income for 2020 was...
Hello, the answer is $3.64
Can someone please explain this step by step? I have tried this
problem several times with no luck.
Jostens Co. had 200,000 shares of common stock, 20,000 shares of convertible preferred stock, and $1,000,000 of 10% bonds outstanding during 2017. The preferred stock is convertible into 20,000 shares of common stock. During 2017, Jostens paid dividends of $1.20 per share on its common stock and $2.50 per share on its preferred stock. Each $1,000 bond...
Information concerning the capital structure of the Petrock Corporation is as follows: Common stock Convertible preferred stock 8%, $1,000 par, convertible bonds December 31 2016 2017 90,000 shares 90,000 shares 10,000 shares 10,000 shares $1,000,000 $1,000,000 During 2017, Petrock paid dividends of $1 per share on its common stock and $2.40 per share on its preferred stock. The preferred stock is convertible into 20,000 shares of common stock. The 8% convertible bonds are convertible into 30,000 shares of common stock....
Please help.
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 42,000 shares of common) 10% convertible bonds (convertible into 20,000 shares of common) 18,000 18,000 $1,000,000 $1,000,000 Ames's net income for the year ended December 31, 2018, is $600,000. The income tax rate is 40%. Ames paid dividends of $5 per share on its preferred stock during 2018. Required: Compute basic and diluted...
babam Q3 (15 marks). robots Information concerning the capital structure of the Acme Corporation is as follows: 151 S o us December 31st 2016 2017 100,000 100,000 Common stock (# of shares) Convertible preferred stock (# of shares) 8% convertible bonds 20,000 20,000 $1,000,000 $1,000,000 During 2017 Acme paid dividends of $1 per share on its C/S and $1.40 per share on preferred stock (P/S). The P/S is convertible into 40,000 shares of C/S. The 6% convertible bonds are convertible...
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...
Information from the financial statements of Ames Fabricators, Inc., included the following: December 31 2018 2017 Common shares 100,000 100,000 Convertible preferred shares (convertible into 42,000 shares of common) 18,000 18,000 106 convertible bonds (convertible into 20,000 shares of common) $1,000,000 $1,000,000 Ames's net income for the year ended December 31, 2018, is $600,000. The income tax rate is 40%. Ames paid dividends of $5 per share on its preferred stock during 2018 Required: Compute basic and diluted earnings per...
Most questions answered within 3 hours.
-
A stock is expected to pay the following dividends: $1.1
four years from now, $1.4 five...
asked 11 seconds ago -
Consider the student registration business process at
your college:
1.)Describe the steps necessary for you to...
asked 2 minutes ago -
G=yellow and g=green pea seeds. You cross a heterozygous
yellow-seeded plant with a green-seeded plant to...
asked 2 minutes ago -
Current Balance Experiment
a) When there is no current flowing through the electromagnet
coil, is there...
asked 1 minute ago -
In Visual Basic 2017, Write a complete Main method that prints
Hello, world to the screen....
asked 17 minutes ago -
a) Find the pressure difference on an airplane wing if air flows
over the upper surface...
asked 23 minutes ago -
Write an assessment of the current business analysis of Hilton
Worldwide using Porters 5 Forces analysis.
asked 34 minutes ago -
i need help on this
Chapter 9 Section 3 Question 1:
Rudy puts this poster, with...
asked 43 minutes ago -
True or false Assembly x86
41. _____ The program counter is a pointer to the
instruction....
asked 43 minutes ago -
You have conducted an experiment to try to demonstrate that
growth factor receptor X protein (GFRX)...
asked 59 minutes ago -
The Gross Profit ratio for 2014 is 57.07%
Assume that Campbell's net sales for the first...
asked 58 minutes ago -
Thoroughly discuss the various current and proposed solutions to
anthropogenic influences resulting in Global Climate Change....
asked 1 hour ago