PharoahCorporation had net income for the current fiscal year of $852,000, and common shares outstanding of80,000. There
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PharoahCorporation had net income for the current fiscal year of $852,000, and common shares outstanding of80,000. There were no changes toPharoah's common shares during the year.Pharoahalso had outstanding a $1,000,000,8% bond sold in a previous year that was convertible to82,000common shares. In addition,Pharoahsold a new bond on October 1 of the current year. The new bond was a $1,000,000,12% bond, convertible to76,800shares.Pharoahwas subject to a tax rate of23%. (For simplicity, ignore the requirement to record the debt and equity portions of the convertible bond separately).
Determine an incremental per share effect for8% bonds.
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