Inferno Co. is a manufacturer and distributer of precision navigation and guidance equipment. The following is...

  

Transcribed Image Text:

Inferno Co. is a manufacturer and distributer of precision navigation and guidance equipment. The following is information about the company's earnings and securities on 31 December 2017. (Note: round all per share values to three decimal places) Earnings and Shares Net income Beginning balance of common shares outstanding Year-end balance of 10% cumulative preferred shares outstanding ($25 par) Average market price of common stock Tax rate Convertible bonds Face amount and carrying value Additional Information on Stock Transactions On March 1, 2017, Inferno repurchased 24 thousand previously issued shares. On July 1, Inferno sold and issued an additional 30 thousand shares of common stock at $30. Interest rate Number of shares issuable Options and Warrants Number of shares issuable Exercise price Requirement 1: Calculate Basic EPS Net income Series A $ 55,000 9% 10,000 Options 7,500 $ 27 Preferred dividends paid Income available to common stockholders (IACS) Weighted average common shares Basic EPS Series B $ 65,000 11% 3,800 $ 275,000 175,000 10,000 Warrants 3,000 $ 35 $ 40 25% ...oo AT&T LTE Done Interest expense Taxes Requirement 2: Calculate the per share effect of each potentially dilutive security Series A Convertible Bonds Adjustment to IACS Shares to be issued Per share effect of Series A Convertible Bonds Series B Convertible Bonds Interest expense Taxes Adjustment to IACS Shares to be issued Per share effect of Series B Convertible Bonds Options Additional shares of common stock Less: Treasury stock purchased Incremental shares Per share effect of Options Warrants Additional shares of common stock Less: Treasury stock purchased Incremental shares Per share effect of Warrants Requirement 3: Calculate diluted EPS IACS Item Basic EPS 21:33 EPS.pdf Subtotal Subtotal Diluted EPS 40% Shares EPS D Inferno Co. is a manufacturer and distributer of precision navigation and guidance equipment. The following is information about the company's earnings and securities on 31 December 2017. (Note: round all per share values to three decimal places) Earnings and Shares Net income Beginning balance of common shares outstanding Year-end balance of 10% cumulative preferred shares outstanding ($25 par) Average market price of common stock Tax rate Convertible bonds Face amount and carrying value Additional Information on Stock Transactions On March 1, 2017, Inferno repurchased 24 thousand previously issued shares. On July 1, Inferno sold and issued an additional 30 thousand shares of common stock at $30. Interest rate Number of shares issuable Options and Warrants Number of shares issuable Exercise price Requirement 1: Calculate Basic EPS Net income Series A $ 55,000 9% 10,000 Options 7,500 $ 27 Preferred dividends paid Income available to common stockholders (IACS) Weighted average common shares Basic EPS Series B $ 65,000 11% 3,800 $ 275,000 175,000 10,000 Warrants 3,000 $ 35 $ 40 25% ...oo AT&T LTE Done Interest expense Taxes Requirement 2: Calculate the per share effect of each potentially dilutive security Series A Convertible Bonds Adjustment to IACS Shares to be issued Per share effect of Series A Convertible Bonds Series B Convertible Bonds Interest expense Taxes Adjustment to IACS Shares to be issued Per share effect of Series B Convertible Bonds Options Additional shares of common stock Less: Treasury stock purchased Incremental shares Per share effect of Options Warrants Additional shares of common stock Less: Treasury stock purchased Incremental shares Per share effect of Warrants Requirement 3: Calculate diluted EPS IACS Item Basic EPS 21:33 EPS.pdf Subtotal Subtotal Diluted EPS 40% Shares EPS D

Answer rating: 100% (QA)

Shares os Fraction of year Os for Weighted noofsharesCol34 Jan 12017 Feb 2017 Beginning balance 1750... View the full answer