The following information was for 20x2: $500 million Net Income Common Stock, $1 par 1/1 shares...
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The following information was for 20x2: $500 million Net Income Common Stock, $1 par 1/1 shares outstanding 2/1 retired for cash 7/23 2-for-1 split 9/1 sold for cash Preferred Stock, 10%, S60 par, cumulative, non-convertible Preferred Stock, 8%, $50 part, cumulative, convertible into 4 million shares of common stock Incentive Stock Options outstanding, fully vested, for 4 million shares of common stock, exercisable at $15 per share Bonds Payable, 12.5%, convertible into 20 million shares of common stock 150 million shares 24 million shares 18 million shares $70 million $100 million $200 million Additional data: 1. The average market price of the common stock was $20. 2. The convertible preferred stock and the bohds payable had been issued at par in 20xx. 3. The tax rate was 40% Required: Calculate basic and diluted earnings per share for the year ended December 31, 20x2. The following information was for 20x2: $500 million Net Income Common Stock, $1 par 1/1 shares outstanding 2/1 retired for cash 7/23 2-for-1 split 9/1 sold for cash Preferred Stock, 10%, S60 par, cumulative, non-convertible Preferred Stock, 8%, $50 part, cumulative, convertible into 4 million shares of common stock Incentive Stock Options outstanding, fully vested, for 4 million shares of common stock, exercisable at $15 per share Bonds Payable, 12.5%, convertible into 20 million shares of common stock 150 million shares 24 million shares 18 million shares $70 million $100 million $200 million Additional data: 1. The average market price of the common stock was $20. 2. The convertible preferred stock and the bohds payable had been issued at par in 20xx. 3. The tax rate was 40% Required: Calculate basic and diluted earnings per share for the year ended December 31, 20x2.
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Calculate basic earnings per share Basic earnings per share can be calculated by using the formula ... View the full answer
Related Book For
South Western Federal Taxation 2015 Essentials of Taxation Individuals and Business Entities
ISBN: 9781285438290
18th edition
Authors: James Smith, William Raabe, David Maloney, James Young
Posted Date:
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