Chapter $20$ Question $3,$ E$20-5($similar to$)$

HW Score: $40\%,2$ of $5$ points

Part $1$ of $2$

Points: $0$ of $1$

estion list

Question $1$

Question $2$

Question $3$

Question $4$

Question $5$

Keyser Stamping began the current year with $450,000$ common shares outstanding and issued an additional $120,000$ shares on September $1.$ The firm has $$11,200,000,1\mathrm{.}5\%$ convertible bonds on June $30($i$.$e$.,$ $$168,000$ coupon interest annually$),$ which are convertible into $327,000$ shares of common stock. The firm issued the bonds at par and did not convert any during the current year. It also had $$1,190,000$ par value, $5\%$ nonconvertible, noncumulative preferred stock outstanding for the full year and declared dividends for the current year. The company is subject to a $30\%$ tax rate and net income is $$3,900,000.$

Requirement

Based on this information, compute basic and diluted earnings per share for the current year.

Calculate the basic earnings per share $($EPS$)$ for the current year. $($Round the EPS to the nearest cent, $X$.$XX$.)$

Basic EPS for the current year $=$