Homework Answers
Interest on Bonds@ 8% = 75000*8% = 6000
Net Income after Interest = 1860 -6000 = -4140 (No tax as there is no profit)
Basic Earning per Share = Net income after interest / Outstanding shares
Basic Earning per Share = -4140 / 2000 = -2.07 per share
After Conversion:
Total Shares after conversion= 7500+2000 = 9500
Diluted earning per share= Income after Tax / Total shares after conversion
Income after Tax = Income - Income*Taxrate
Income after Tax = 1860 - 1860*0.4 = 1116
Diluted earning per share = 1116 / 9500 = 0.117 per share ~ 0.18 (rounded two digits)
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if possible can you also show the formula to plug in excel.
thanks in advance!
1...
Chapter 16: Earnings Per Share Calculations Assignment #1 Basic Earnings Per Share Example 1: Convertible Bonds...
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...
if possible can you also put the formulas to plug in the excel file. thanks in...
if possible can you also put the formulas to plug in the excel
file. thanks in advance!
Basic Earnings Per Share = Diluted Earning Per Share = 13 Example 2: Convertible Preferred Staocks 14 Net Income: 1200000 15 Preferred Stocks: 4000000 16 Dividend Rate: 0.06 17 Tax Rate: 0.4 AVG number of Share 18 Outstanding: 600000 Additional Sahres 19 after Conversion 200000 40000 1000 Basic Earnings Per Share = 22 Example 3: Options 23 Net Income 24 Number of Options:...
NEED HELP WITH BASIC AND DILLUTED FORMULAS. I have the correct answers, need to write this...
NEED HELP WITH BASIC AND DILLUTED FORMULAS. I have the correct
answers, need to write this in formula format!
с н т у к BCD 1 Chapter 16: Earnings Per Share Calculations 2 Assignment #1 Basic Earnings Per Share = 4 Example 1: Convertible Bonds 5 Net Income: 6 Bonds Payable: 7 Stated Rate: 8 Tax Rate: AVG number of Share 9 Outstanding: Additional Sahres 10 after Conversion 1860 75000 0.08 0.4 Diluted Earning Per Share = 2000 7500 Basic...
calculate earnings per share 1860 75000 0.08 4 Example 1: Convertible Bonds 5 Net Income: 6...
calculate earnings per share
1860 75000 0.08 4 Example 1: Convertible Bonds 5 Net Income: 6 Bonds Payable: 7 Stated Rate: 8 Tax Rate: AVG number of Share 9 Outstanding: Additional Sahres 10 after Conversion 0.4 2000 7500 11
Please show all work. Thanks in advance! The information below pertains to Coronado Company for 2021....
Please show all work. Thanks in advance!
The information below pertains to Coronado Company for 2021. $1,140,000 2,010,000 Net income for the year 6% convertible bonds issued at par ($1,000 per bond); each bond is convertible into 30 shares of common stock 6% convertible, cumulative preferred stock, $100 par value; each share is convertible into 3 shares of common stock Common stock, $10 par value Tax rate for 2021 Average market price of common stock 3,820,000 5,820,000 20% $25 per...
looking for dileted EPS numerator and pls show work..thanks Information from the financial statements of Ames...
looking for dileted EPS numerator and pls show work..thanks
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 64,000 shares of common) 10% convertible bonds (convertible into 20,000 shares of common) 31,200 31,200 $1,000,000 $1,000,000 Ames's net income for the year ended December 31, 2018, is $820,000. The income tax rate is 400 Ames paid dividends of $5 per share on its preferred stock...
1.) Compute net income available to common stockholders. 2.) Compute basic earnings per share. Round to...
1.) Compute net income available to common stockholders.
2.) Compute basic earnings per share. Round to two decimal
places.
3.) Compute the foregone interest expense AFTER TAX on the
convertible bonds.
4.) Compute the per share effect of the convertible bonds. Round to
two decimal places.
5.) Compute the foregone dividends on the convertible preferred
stock.
6.) Compute the per share effect of the convertible preferred
stock.
7.) Compute the incremental increase in the number of shares
outstanding for the...
On January 1, 2019, Concord issued 10-year, $300,000 face value, 6% bonds at par. Each $1,000...
On January 1, 2019, Concord issued 10-year, $300,000 face value,
6% bonds at par. Each $1,000 bond is convertible into 30 shares of
Concord $2 par value common stock. The company has had 10,000
shares of common stock (and no preferred stock) outstanding
throughout its life. None of the bonds have been converted as of
the end of 2020. (Ignore all tax effects.)
a. Prepare the journal entry Concord would have made on January
1, 2019, to record the issuance...
Problem 19-187 Paul Company had 100,000 shares of common stock outstanding on January 1, 2018. On...
Problem 19-187 Paul Company had 100,000 shares of common stock outstanding on January 1, 2018. On September 30, 2018, Paul sold 55,000 shares of common stock for cash. Paul also had 13,500 shares of convertible preferred stock outstanding throughout 2018. The preferred stock is $100 par, 7%, and is convertible Into 3 shares of common for each share of preferred. Paul also had 570,9%, convertible bonds outstanding throughout 2018. Each $1,000 bond is convertible Into 30 shares of common stock....
Convertible Preferred Stock, Convertible Bonds, and EPS Francis Company has 12,000 shares of common stock outstanding...
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...
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...
if possible can you also put the formulas to plug in the excel
file. thanks in advance!
Basic Earnings Per Share = Diluted Earning Per Share = 13 Example 2: Convertible Preferred Staocks 14 Net Income: 1200000 15 Preferred Stocks: 4000000 16 Dividend Rate: 0.06 17 Tax Rate: 0.4 AVG number of Share 18 Outstanding: 600000 Additional Sahres 19 after Conversion 200000 40000 1000 Basic Earnings Per Share = 22 Example 3: Options 23 Net Income 24 Number of Options:...
NEED HELP WITH BASIC AND DILLUTED FORMULAS. I have the correct
answers, need to write this in formula format!
с н т у к BCD 1 Chapter 16: Earnings Per Share Calculations 2 Assignment #1 Basic Earnings Per Share = 4 Example 1: Convertible Bonds 5 Net Income: 6 Bonds Payable: 7 Stated Rate: 8 Tax Rate: AVG number of Share 9 Outstanding: Additional Sahres 10 after Conversion 1860 75000 0.08 0.4 Diluted Earning Per Share = 2000 7500 Basic...
calculate earnings per share
1860 75000 0.08 4 Example 1: Convertible Bonds 5 Net Income: 6 Bonds Payable: 7 Stated Rate: 8 Tax Rate: AVG number of Share 9 Outstanding: Additional Sahres 10 after Conversion 0.4 2000 7500 11
Please show all work. Thanks in advance!
The information below pertains to Coronado Company for 2021. $1,140,000 2,010,000 Net income for the year 6% convertible bonds issued at par ($1,000 per bond); each bond is convertible into 30 shares of common stock 6% convertible, cumulative preferred stock, $100 par value; each share is convertible into 3 shares of common stock Common stock, $10 par value Tax rate for 2021 Average market price of common stock 3,820,000 5,820,000 20% $25 per...
looking for dileted EPS numerator and pls show work..thanks
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 64,000 shares of common) 10% convertible bonds (convertible into 20,000 shares of common) 31,200 31,200 $1,000,000 $1,000,000 Ames's net income for the year ended December 31, 2018, is $820,000. The income tax rate is 400 Ames paid dividends of $5 per share on its preferred stock...
1.) Compute net income available to common stockholders.
2.) Compute basic earnings per share. Round to two decimal
places.
3.) Compute the foregone interest expense AFTER TAX on the
convertible bonds.
4.) Compute the per share effect of the convertible bonds. Round to
two decimal places.
5.) Compute the foregone dividends on the convertible preferred
stock.
6.) Compute the per share effect of the convertible preferred
stock.
7.) Compute the incremental increase in the number of shares
outstanding for the...
On January 1, 2019, Concord issued 10-year, $300,000 face value,
6% bonds at par. Each $1,000 bond is convertible into 30 shares of
Concord $2 par value common stock. The company has had 10,000
shares of common stock (and no preferred stock) outstanding
throughout its life. None of the bonds have been converted as of
the end of 2020. (Ignore all tax effects.)
a. Prepare the journal entry Concord would have made on January
1, 2019, to record the issuance...
Problem 19-187 Paul Company had 100,000 shares of common stock outstanding on January 1, 2018. On September 30, 2018, Paul sold 55,000 shares of common stock for cash. Paul also had 13,500 shares of convertible preferred stock outstanding throughout 2018. The preferred stock is $100 par, 7%, and is convertible Into 3 shares of common for each share of preferred. Paul also had 570,9%, convertible bonds outstanding throughout 2018. Each $1,000 bond is convertible Into 30 shares of common stock....
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