Following is information taken from Blossom Inc's December 31, 2023 SFP: 5% bonds payable, $5,681,000 maturing...

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Following is information taken from Blossom Inc's December 31, 2023 SFP: 5% bonds payable, $5,681,000 maturing December 31, 2025, each $1,000 bond convertible into 19 common shares 8% bonds payable, $5,005,000, maturing December 31, 2026, each $1,000 bond convertible into 29 common shares at any time up to December 31, 2026 Cumulative preferred shares, $5, no-par value, convertible at 1 preferred share for 4 common shares, 52,000 shares outstanding Common shares, no par-value, 3,179,000 shares outstanding $5,681,000 $5,005,000 $1,040,000 Blossom's net income for 2023 was $8,599,800, and the company was subject to an income tax rate of 20%. Both classes of bonds were outstanding the entire year, as were the preferred shares. The weighted-average number of common shares outstanding during the period was 3,626,000. Calculate basic earnings per share. (Round answer to 2 decimal places, e.g. 15.25.) Following is information taken from Blossom Inc's December 31, 2023 SFP: 5% bonds payable, $5,681,000 maturing December 31, 2025, each $1,000 bond convertible into 19 common shares 8% bonds payable, $5,005,000, maturing December 31, 2026, each $1,000 bond convertible into 29 common shares at any time up to December 31, 2026 Cumulative preferred shares, $5, no-par value, convertible at 1 preferred share for 4 common shares, 52,000 shares outstanding Common shares, no par-value, 3,179,000 shares outstanding $5,681,000 $5,005,000 $1,040,000 Blossom's net income for 2023 was $8,599,800, and the company was subject to an income tax rate of 20%. Both classes of bonds were outstanding the entire year, as were the preferred shares. The weighted-average number of common shares outstanding during the period was 3,626,000. Calculate basic earnings per share. (Round answer to 2 decimal places, e.g. 15.25.)

Answer rating: 100% (QA)

Solution To calculate the diluted earnings per share EPS for Blossom Inc we need to determine the potential dilution from the convertible securities a... View the full answer