On January 1, 2023 The Tamarisk Shoppe issued the following series of bonds: First issue: 440...

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On January 1, 2023 The Tamarisk Shoppe issued the following series of bonds: First issue: 440 $1,000, 5% bonds, at par, each convertible into 10 common shares. Second issue: 500 $100, 8% bonds, at par, each convertible into 5 common shares. For the year ended December 31, 2023, the company had net income of $598,000. Throughout 2023, 46,000 common shares were outstanding and none of the bonds were converted or redeemed. The company's tax rate was 25%. (a) Calculate basic earnings per share. (For simplicity, ignore the requirement to record the debt and equity portions of the convertible bond separately). (Round answer to 2 decimal places, e.g. 15.25.) Basic earnings per share $ On January 1, 2023 The Tamarisk Shoppe issued the following series of bonds: First issue: 440 $1,000, 5% bonds, at par, each convertible into 10 common shares. Second issue: 500 $100, 8% bonds, at par, each convertible into 5 common shares. For the year ended December 31, 2023, the company had net income of $598,000. Throughout 2023, 46,000 common shares were outstanding and none of the bonds were converted or redeemed. The company's tax rate was 25%. (a) Calculate basic earnings per share. (For simplicity, ignore the requirement to record the debt and equity portions of the convertible bond separately). (Round answer to 2 decimal places, e.g. 15.25.) Basic earnings per share $

Answer rating: 100% (QA)

Answer To calculate the basic earnings per share EPS we need to divide the net income by the ... View the full answer