Use the same information as in P17-13, but also assume the following. 1. On September 30, 200,000
Question:
1. On September 30, 200,000 convertible preferred shares were redeemed. If they had been converted, these shares would have resulted in an additional 100,000 common shares being issued. The shares carried a dividend rate of $3 per share to be paid on September 30. No conversions have ever occurred.
2. There are 10,000 $1,000, 5% convertible bonds outstanding with a conversion rate of three common shares for each bond starting January 1, 2012. Beginning January 1, 2015, the conversion rate is six common shares for each bond; and beginning January 1, 2019, it is nine common shares for each bond. The tax rate is 40%.
Instructions
(a) Calculate the required EPS numbers under IFRS. For simplicity, ignore the impact that would result from the convertible debt being a hybrid security.
(b) Show the required presentations on the face of the income statement. Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Related Book For
Intermediate Accounting
ISBN: 978-0470161012
9th Canadian Edition, Volume 2
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield.
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