Boice Corporation and Hamlin Corporation have both earned $170,000 before bond interest and taxes. The companies have
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Boice Corporation and Hamlin Corporation have both earned $170,000 before bond interest and taxes. The companies have the same number of outstanding shares but different capital structures. The bond and stocks have been outstanding all year. Calculate the earnings per share of common stock for both companies from the following:
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8% Bond Payable 8% Preferred stock Common stock $15 par, 30,000 shares outstanding Operating income before interest and taxes (assume a 25% tax rate) Boice 180,000 -0- 450,000 170,000 Hamlin -0- 180,000 450,000 170,000
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Aftertax earnings Boice 116...View the full answer
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Related Book For
College Accounting A Practical Approach Chapters 1-25
ISBN: 9780137504282
15th Edition
Authors: Jeffrey Slater, Mike Deschamps
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