Jamieson Company earned net income of $43,800 during 2007. At the beginning of 2007 it had 10,000

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Jamieson Company earned net income of $43,800 during 2007. At the beginning of 2007 it had 10,000 shares of common stock outstanding; an additional 4,000 shares were issued on July 2. During 2007, 600 shares of 8%, $100 par, convertible preferred stock were outstanding the entire year. Dividends on this preferred stock were paid in 2007. Each share is convertible into 5 shares of common stock. The corporate income tax rate is 30%.


Required

Compute the 2007 diluted earnings per share.


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...
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Intermediate Accounting

ISBN: 978-0324300987

10th Edition

Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones

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