Benoit Limited had net income for the fiscal year ending June 30, 2014, of $16.4 million. There

Question:

Benoit Limited had net income for the fiscal year ending June 30, 2014, of $16.4 million. There were 2 million common shares outstanding throughout 2014. The average market price of the common shares for the entire fiscal year was $75. Benoit's tax rate was 30% for 2014.
Benoit had the following potential common shares outstanding during 2014:
1. Options to buy 100,000 common shares at $60 per share
2. 800,000 convertible preferred shares entitled to a cumulative of $8 per share. Each preferred share is convertible into two common shares.
3. 5% convertible with a principal amount of $100 million, issued at par. Each $1,000 debenture is convertible into 20 common shares.
Instructions
For the fiscal year ended June 30, 2014, calculate the following for Benoit Limited. For simplicity, ignore the requirement to record the debt and equity components separately.
(a) Basic earnings per share
(b) Diluted earnings per share
Debentures
Debenture DefinitionDebentures are corporate loan instruments secured against the promise by the issuer to pay interest and principal. The holder of the debenture is promised to be paid a periodic interest and principal at the term. Companies who... 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...