Select information for Gail s Play School Corp. ( GPSC ) follows: GPSC earned net income of
Fantastic news! We've Found the answer you've been seeking!
Question:
Select information for Gails Play School Corp. GPSC follows: GPSC earned net income of $ for the year ended December GPSC was subject to a tax rate. GPSC had ordinary shares outstanding
during the entire year; their average market price was $GPSC had $ in cumulative preferred shares outstanding during the entire year. At the option of the holder, each $ share is convertible into four ordinary shares anytime after December GPSC did not declare dividends in but paid out $ in dividends declared in GPSC had series A stock options outstanding the entire year that allowed employees to buy ordinary shares for $ each until December and for $ each from January until December GPSC had series B stock options outstanding the entire year that allowed employees to buy
ordinary shares for $ each until December GPSC had $ in bonds maturing on December that were outstanding the entire year. Each $ bond is convertible into ordinary shares anytime
before expiry. Assume that the effective rate of interest on the bonds equals the coupon rate.
Required: Calculate GPSCs basic EPS for the year ended December Prepare a schedule that sets out the income effect, share
effect, and incremental EPS for each security that is convertible into ordinary shares. Rank the potential ordinary shares by their dilutiveness.Calculate GPSCs diluted EPS for the year ended December
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date: