Fox has the following transaction in 2022:

1/1: Outstanding shares: 200,000 common ($2 par)

3/1: Fox issues 35,000 cum. 8% preferred ($50 par) convertible to 250,000 common

5/1: Fox declares a 2 for 1 common stock split

6/1: Fox issues 150,000 common shares at a $25 market price

7/1: Fox grants 100,000 common stock options, $15 exercise price & $20 average market price

9/1: Fox issues a $1,000,000, 8% bond at par, convertible to 150,000 common shares 12/31: Fox reports $500,000 NI (with 21% tax rate) & declares $150,000 dividends (paid in 2022)

Required

What is EPS?

What effect would the conversion of the convertible bonds have on the numerator of the EPS ratio?

What is DEPS?

Answer rating: 100% (QA)

To calculate the various components related to earnings per share ... View the full answer