Villanueva Corp. had 200,000 shares of common stock, 20,000 shares of convertible preferred stock, and $1,000,000 of 5% convertible bonds outstanding during 2020. The preferred stock is convertible into 40,000 shares of common stock. During 2020, Villanueva paid dividends of $1.20 per share on the common stock and $4 per share on the preferred stock. The bonds were originally issued at par and each $1,000 bond is convertible into 45 shares of common stock. Villanueva’s net income for 2020 was $1,800,000 and the applicable income tax rate was 25%. Compute Villanueva's Basic EPS for 2020.

Refer to the information above. Compute Villanueva's Diluted EPS for 2020.

Answer rating: 100% (QA)

Villanueva Corp Earnings per Share EPS for 2020 Basic EPS Calculate Total Dividends Paid Common Stock Dividends 200000 shares 120share 240000 Preferre... View the full answer