ABC Limited had net income for the fiscal year ending December 31, 2020, of $15.4 million....
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ABC Limited had net income for the fiscal year ending December 31, 2020, of $15.4 million. There are 2 million common shares outstanding throughout 2020. The average market price of the commi shares for the entire fiscal yeat was $75. ABC tax rate was 25% for 2020. ABC had the following potential common shares outstanding during 2020: -Options to buy 100,000 common shares at $60 per share -800,000 convertible preferred shares entitled to a cumulative dividend of $9 per share. Each preferred share is convertible into two common shares. -6% convertible debenture with a principal amount if $100 million, issued at par. Each $1,000 debenture is convertible into 20 common shares. Instructions 1. Calculate the basic earnings per share 2. Calculate the Diluted earnings per share ABC Limited had net income for the fiscal year ending December 31, 2020, of $15.4 million. There are 2 million common shares outstanding throughout 2020. The average market price of the commi shares for the entire fiscal yeat was $75. ABC tax rate was 25% for 2020. ABC had the following potential common shares outstanding during 2020: -Options to buy 100,000 common shares at $60 per share -800,000 convertible preferred shares entitled to a cumulative dividend of $9 per share. Each preferred share is convertible into two common shares. -6% convertible debenture with a principal amount if $100 million, issued at par. Each $1,000 debenture is convertible into 20 common shares. Instructions 1. Calculate the basic earnings per share 2. Calculate the Diluted earnings per share
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Related Book For
Intermediate Accounting Volume 1
ISBN: 978-1119496496
12th Canadian edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy
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