5 Navcorp Inc. is a public company trading on the Toronto stock exchange. Navcorp's capital structure...
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5 Navcorp Inc. is a public company trading on the Toronto stock exchange. Navcorp's capital structure as of December 31, 2023 is as follows: 16 $30 million, 10 year convertible bonds issued at par, interest at 6% per annum payable annually every 1 December 31st. Each $1,000 bond is convertible into 120 common shares. Preferred Shares, no-par value $2.50 dividend, cumulative, non-participating, 600,000 shares issued and 2 outstanding. Each preferred shares is convertible into 8 common shares. Total book value is $1,200,000. 412,000 stock options outstanding allowing option-holders to purchase 2 common shares for each option at 3 $1 per share. - After tax 2023 Net Income is $8,220,000. The income tax rate for 2023 is 40%. The average common share 4 price in 2023 is $8.00 per share. Transactions that occurred during 2023: 1 Jan 1, 2023-8,000,000 common shares outstanding (opening balance). 2 April 1, 2023-600,000 common shares issued at $10 per share. Instructions a) Calculate Navcorp's basic and diluted EPS for the year-end December 31, 2023. Provide detailed support for all calculations. (13 marks) Net Income Weighted Average # of Common Shares EPS 5 Navcorp Inc. is a public company trading on the Toronto stock exchange. Navcorp's capital structure as of December 31, 2023 is as follows: 16 $30 million, 10 year convertible bonds issued at par, interest at 6% per annum payable annually every 1 December 31st. Each $1,000 bond is convertible into 120 common shares. Preferred Shares, no-par value $2.50 dividend, cumulative, non-participating, 600,000 shares issued and 2 outstanding. Each preferred shares is convertible into 8 common shares. Total book value is $1,200,000. 412,000 stock options outstanding allowing option-holders to purchase 2 common shares for each option at 3 $1 per share. - After tax 2023 Net Income is $8,220,000. The income tax rate for 2023 is 40%. The average common share 4 price in 2023 is $8.00 per share. Transactions that occurred during 2023: 1 Jan 1, 2023-8,000,000 common shares outstanding (opening balance). 2 April 1, 2023-600,000 common shares issued at $10 per share. Instructions a) Calculate Navcorp's basic and diluted EPS for the year-end December 31, 2023. Provide detailed support for all calculations. (13 marks) Net Income Weighted Average # of Common Shares EPS
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Based on the information provided in your image I will explain how to calculate basic and diluted earnings per share EPS for the yearend December 31 2023 for Navcorp Inc Basic EPS Basic EPS is calcula... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0470161012
9th Canadian Edition, Volume 2
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield.
Posted Date:
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