Assume the following facts about a parent and its 75% owned subsidiary company: Parent Subsidiary Net...

 

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Assume the following facts about a parent and its 75% owned subsidiary company: Parent Subsidiary Net income. Common shares outstanding Convertible prefered stock $180 ,000 $45,000 22,000 (16,500 = 75% owned by parent) 50,000 Dividends = $17,100 Convertible into 9,000 shares of common stock Interest expense after tax=$7,200 Convertible into 4,500 shares of Convertible bonds. %3D Common stock a. Compute basic earmings per share b. Compute diluted eamings per share Assume the following facts about a parent and its 75% owned subsidiary company: Parent Subsidiary Net income. Common shares outstanding Convertible prefered stock $180 ,000 $45,000 22,000 (16,500 = 75% owned by parent) 50,000 Dividends = $17,100 Convertible into 9,000 shares of common stock Interest expense after tax=$7,200 Convertible into 4,500 shares of Convertible bonds. %3D Common stock a. Compute basic earmings per share b. Compute diluted eamings per share

Answer rating: 100% (QA)

Combined profit attributable to the group Net Income of Parent Parent Share of Net Incom... View the full answer