Homework Answers
Calculation of Diluted earnings per share
Net income - $ 112,00,000
Add : Interest on bond (net of tax) i.e (1 - 20%)
Or (1 - .20)
5060000*7%=354200 *(1-.20) $ 2,83,360
Adjusted net income 1,14,83,360
Total outstanding shares = Current outstanding share + Convertible debenture
1815000 + (5060*14) = 1885840 shares
Diluted earning per share = Adjusted net income / outstanding share
11483360 / 1885840
= 6.08
Add Answer to:
Exercise 16-24 a Your answer is partially correct. Try again. The Marin Corporation issued 10-year, $5,060,000...
Exercise 16-24 The Vaughn Corporation issued 10-year, $4,430,000 par, 7% callable convertible subordinated debentures on January...
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...
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 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...
The Crane Corporation issued 10-year 54,100,000 par, 7% callable convertible subordinated debentures on January 2, 2020....
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 Ivanhoe Corporation issued 10-year, $5,470,000 par, 7% callable convertible subordinated debentures on January 2, 2017....
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 Skysong Corporation issued 10-year, $5,270,000 par, 6% callable convertible subordinated debentures on January 2, 2017....
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...
The Sweet Corporation issued 10-year, $4,890,000 par, 7% callable convertible subordinated debentures on January 2, 2017....
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...
Exercise 16-24 The Bridgeport Corporation issued 10 year $5,460.000 par a convertible subordinated debentures on January...
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...
The Windsor Corporation issued 10-year, $5,470,000 par, 7% callable convertible subordinated debentures on January 2, 2017....
The Windsor 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. Windsor’s effective tax was 35%. Net income in 2017 was $9,350,000, and the company had 1,820,000 shares outstanding...
Problem 16-08 Your answer is partially correct. Try again. The information below pertains to Wildhorse Company...
Problem 16-08
Your answer is partially correct. Try again.
The information below pertains to Wildhorse Company for 2021.
Net income for the year
$1,250,000
7% convertible bonds issued at par ($1,000 per bond); each bond
is convertible into
30 shares of common stock
2,070,000
6% convertible, cumulative preferred stock, $100 par value;
each share is convertible
into 3 shares of common stock
4,120,000
Common stock, $10 par value
6,060,000
Tax rate for 2021
20%
Average market price of common...
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...
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 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...
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...
Problem 16-08
Your answer is partially correct. Try again.
The information below pertains to Wildhorse Company for 2021.
Net income for the year
$1,250,000
7% convertible bonds issued at par ($1,000 per bond); each bond
is convertible into
30 shares of common stock
2,070,000
6% convertible, cumulative preferred stock, $100 par value;
each share is convertible
into 3 shares of common stock
4,120,000
Common stock, $10 par value
6,060,000
Tax rate for 2021
20%
Average market price of common...
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 10 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 10 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 10 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 10 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 10 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 10 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 10 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 10 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 10 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 10 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 10 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 10 months ago