At January 1 and December 31 2005, Candyland Corporation has the following securities outstanding:? 1,000,000,000 shares 5%

Question:

At January 1 and December 31 2005, Candyland Corporation has the following securities outstanding:? 1,000,000,000 shares 5% convertible bonds, $1.000 face amount (issued at 100) convertible into 30 million shares of common stock 10 million 8% cumulative preferred shares, $40 par value, convertible into 20 million shares of common stock 20 million 6% convertible preferred stock, $50 par value, convertible into 30 million shares of common stock 100 million options to buy common stock at $30 per share 150 million options to buy common stock at $35 per share 800 million shares of common stock, $20 par value Net income for 2005 was $1,600 million and the tax rate was 25% Candyland has paid all preferred dividends Common stock prices : average for the year $40 closing price for the year $32 Show work

1. Calculate basic EPS 2. Calculate Diluted EPs

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...