Question: Computing EPS: Convertible Debt Shaffer Corporation issued 180, $1,000, 10% convertible bonds in 2019 at face value. Each bond is convertible into 100 shares of


Computing EPS: Convertible Debt Shaffer Corporation issued 180, $1,000, 10% convertible bonds in 2019 at face value. Each bond is convertible into 100 shares of common stock. Shaffer's net income for 2020 is $3,100,800 ($4,134,400 before tax). Considering all factors except convertible bonds, average common shares outstanding for 2020 were 1,818,000. Note: In the following calculations, round earnings per share amounts to two decimal places. a. Compute basic EPS. b. Compute diluted EPS. Per Share Net Income Available to Weighted Avg. Common Common Stockholders Shares Outstanding Basic EPS $ Diluted EPS $ c. How do the answers to parts a and b change if the bonds were issued on July 1, 2020? Per Share Net Income Available to Weighted Avg. Common Common Stockholders Shares Outstanding Basic EPS $ Diluted EPS $ c. How do the answers to parts a and b change if the bonds were issued on July 1, 2020? Net Income Available to Weighted Avg. Common Per Common Stockholders Shares Outstanding Share Basic EPS $ Diluted EPS $ d. Ignoring part c, how do the answers to parts a and b change if one-half of the bonds were converted on July 1, 2020? Net Income Available to Weighted Avg. Common Per Common Stockholders Shares Outstanding Share Basic EPS $ Diluted EPS $
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