In 2024, Crane Enterprises issued, at par. 60 $1,000,8% bonds, each convertible into 100 shares of...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
In 2024, Crane Enterprises issued, at par. 60 $1,000,8% bonds, each convertible into 100 shares of common stock. Crane had revenues of $18,600 and expenses other than interest and taxes of $8,200 for 2025. (Assume that the tax rate is 20%.) Throughout 2025, 2,300 shares of common stock were outstanding; none of the bonds was converted or redeemed. (a) Compute diluted earnings per share for 2025. (Round answer to 2 decimal places, e.g. 2.55.) Earnings per share $ 1 (b) Assume the same facts as those assumed for part (a), except that the 60 bonds were issued on September 1, 2025 (rather than in 2024), and none have been converted or redeemed. Compute diluted earnings per share for 2025. (Round answer to 2 decimal places, e.g. 2.55.) Earnings per share $ 8300 (c) Assume the same facts as assumed for part (a), except that 20 of the 60 bonds were actually converted on July 1, 2025. Compute diluted earnings per share for 2025. (Round answer to 2 decimal places, e.g. 2.55.) Earnings per share $ In 2024, Crane Enterprises issued, at par. 60 $1,000,8% bonds, each convertible into 100 shares of common stock. Crane had revenues of $18,600 and expenses other than interest and taxes of $8,200 for 2025. (Assume that the tax rate is 20%.) Throughout 2025, 2,300 shares of common stock were outstanding; none of the bonds was converted or redeemed. (a) Compute diluted earnings per share for 2025. (Round answer to 2 decimal places, e.g. 2.55.) Earnings per share $ 1 (b) Assume the same facts as those assumed for part (a), except that the 60 bonds were issued on September 1, 2025 (rather than in 2024), and none have been converted or redeemed. Compute diluted earnings per share for 2025. (Round answer to 2 decimal places, e.g. 2.55.) Earnings per share $ 8300 (c) Assume the same facts as assumed for part (a), except that 20 of the 60 bonds were actually converted on July 1, 2025. Compute diluted earnings per share for 2025. (Round answer to 2 decimal places, e.g. 2.55.) Earnings per share $
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
No Opportunity Costs The Van Division of MotoCar Corporation has offered to purchase 180,000 wheels from the Wheel Division for $41 per wheel. At a normal volume of 500,000 wheels per year,...
-
Jim Nance has been offered an investment that will pay him $500 three years from today. a. If his opportunity cost is 7% compounded annually, what value should he place on this opportunity today? b....
-
In Problem, use the price-demand equation to find the values of p for which demand is elastic and the values for which demand is inelastic. Assume that price and demand are both positive. x = f(p) =...
-
The impact of employee and management fraud is staggering both in terms of dollar costs and the effect on the victims. For each of the following independent cases of employee fraud, describe the...
-
Highland Automotive wishes to forecast the number of new cars that will be sold next week. The following table summarizes the number of new cars sold during each of the past 12 weeks: (a) Provide a...
-
You are bullish on Telecom stock. The current market price is $60 per share, and you have $5,700 of your own to invest. You borrow an additional $5,700 from your broker at an interest rate of 6% per...
-
Following are the transactions of a new company called Pose-for-Pics. August 1 M. Harris, the owner, invested $12,500 cash and $53,750 of photography equipment in the company in exchange for common...
-
a. Explain what is meant by the term structure of volatility. b. What is the most frequently observed shape of the term structure of volatility?
-
What is a record association?
-
What factors influence forward rates implied from the yield curve other than the markets expectations of future interest rates?
-
Define a data record.
-
Explain why the quoted yield on a bank discount basis for a U.S. Treasury bill is not directly comparable to a coupon Treasurys yield?
-
prentice plc is funded by: 10 million ordinary shares of 1 each nominal value; and 20 million 1 bonds offering a 10prentice plc is funded by: 10 million ordinary shares of 1 each nominal value; and...
-
An Atomic Energy Commission nuclear facility was established in Hanford, Washington, in 1943. Over the years, a significant amount of strontium 90 and cesium 137 leaked into the Columbia River. In a...
-
Why is an increase in accumulated depreciation on the balance sheet ignored when analyzing the cash flows from investing activities?
-
What does an increase in the balance of accounts payable indicate?
-
The consistency principle stipulates that when a company begins using a given inventory valuation method (FIFO, LIFO, or the weighted-average cost method), the company should continue to use that...
Study smarter with the SolutionInn App