Atlas, Inc., has the following capital structure at January 1, 2013. Outstanding Common stock, $10 par .

Question:

Atlas, Inc., has the following at January 1, 2013.
Outstanding
Common stock, $10 par . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .800,000 shares
11% stated interest rate convertible bonds issued at par;
each $1,000 bond is convertible into 80 shares of . . . . . $5,000,000
During 2013, Atlas had the following stock transactions:
May 1 Issued 50,000 shares of for $30 per share.
Aug. 1 Purchased 100,000 shares of treasury stock at $35 per share.
Oct. 1 Converted $2,000,000 of bonds.
Net income for 2013 was $950,000. The income tax rate was 30%. Compute basic and diluted EPS for Atlas for 2013.
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... Capital Structure
Capital structure refers to a company’s outstanding debt and equity. The capital structure is the particular combination of debt and equity used by a finance its overall operations and growth. Capital structure maximizes the market value of a...