Question: I would like to know how this was calculated please. On January 1, Framber Star Inc. had 617,000 common shares outstanding. The company issued an
On January 1, Framber Star Inc. had 617,000 common shares outstanding. The company issued an additional 192,000 shares on March 1. Framber Star also issued $1.600,00 pr value 3% nonconvertible noncumulative prefered stock on October 1 and declared dividends for the current quarter On April 30, the firm issued $5.170,000 6% convertible bonds o tanding Le S310.200 coupon interest per year that are convertible into 93,000 shares of common stock. The firm issued all bonds at par and did not convert any during the current year. The company is subject to a 30% effective tax rate and net income is$6,600,000. Requirement Based on this information, compute basic and diluted earrings per share for the ourent year Calculate the basic earnings per share (EPS) for the current year. (Round any intermediary computations to the nearest whole number, but then round the EPS to the nearest cent, SX.XX.) Basic EPS for the current year is S8.48 Calculate the diluted EPS for the current year.(Round any intermediary computations to the nearest whole number, but then round the EPS to the nearest cent sx.xx.) Diluted EPS for the current year is $ 8.02
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