Selected account balances of the Han Corporation as at December 31, 20x3 are as follows: Convertible...

 

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Selected account balances of the Han Corporation as at December 31, 20x3 are as follows: Convertible bonds, 5% Preferred Shares, Series A, $4, noncumulative, 60,000 shares issued and outstanding, each preferred share is convertible into 3 common shares $31,045,617 Preferred Shares, Series B. $5, cumulative, 35,000 shares issued and outstanding Common shares, 3,000,000 shares issued and outstanding Additional Information - The convertible bonds were issued on December 31, 20x0 and mature on December 31, 20x20. The face value of the bonds is $30,000,000. The bonds were issued to yield 4.7%. The bonds pay interest on June 30 and December 31 of each year. Each $1,000 bond is convertible into 20 common shares. Han has three stock option plans outstanding at December 31, 20x3: Series X: 20,000 options at an exercise price of $18 Series Y: 15,000 options at an exercise price of $24 Series Z: 45,000 options at an exercise price of $15 6,000,000 the average stock price for the year was $21. 3,500,000 In 20x3, Han purchased the shares of another company. As part of the agreement, Han agreed to issue an additional 80,000 shares on February 15, 20x4 if the net income of the other company for the year ended December 31, 20x3 was in excess of $1,000,000. The net income of the other company at December 31, 20x3 was $1,200,000. 42,000,000 the net income for the year ended December 31, 20x3 was $5,200,000 the tax rate is 28% a) b) the following common stock transactions occurred during the year: March 1, 20x3 - Issued 300,000 shares July 1, 20x3 - Repurchased and cancelled 140,000 shares November 1, 20x3 - Issued 450,000 shares Han declared total dividends of $800,000 in 20x3 Required - Calculate the basic and diluted EPS for the year ended December 31, 20x3. Calculate the weighted average number of shares for purposes of calculating Basic EPS if there was a 2:1 stock split on August 31, 20x3. Selected account balances of the Han Corporation as at December 31, 20x3 are as follows: Convertible bonds, 5% Preferred Shares, Series A, $4, noncumulative, 60,000 shares issued and outstanding, each preferred share is convertible into 3 common shares $31,045,617 Preferred Shares, Series B. $5, cumulative, 35,000 shares issued and outstanding Common shares, 3,000,000 shares issued and outstanding Additional Information - The convertible bonds were issued on December 31, 20x0 and mature on December 31, 20x20. The face value of the bonds is $30,000,000. The bonds were issued to yield 4.7%. The bonds pay interest on June 30 and December 31 of each year. Each $1,000 bond is convertible into 20 common shares. Han has three stock option plans outstanding at December 31, 20x3: Series X: 20,000 options at an exercise price of $18 Series Y: 15,000 options at an exercise price of $24 Series Z: 45,000 options at an exercise price of $15 6,000,000 the average stock price for the year was $21. 3,500,000 In 20x3, Han purchased the shares of another company. As part of the agreement, Han agreed to issue an additional 80,000 shares on February 15, 20x4 if the net income of the other company for the year ended December 31, 20x3 was in excess of $1,000,000. The net income of the other company at December 31, 20x3 was $1,200,000. 42,000,000 the net income for the year ended December 31, 20x3 was $5,200,000 the tax rate is 28% a) b) the following common stock transactions occurred during the year: March 1, 20x3 - Issued 300,000 shares July 1, 20x3 - Repurchased and cancelled 140,000 shares November 1, 20x3 - Issued 450,000 shares Han declared total dividends of $800,000 in 20x3 Required - Calculate the basic and diluted EPS for the year ended December 31, 20x3. Calculate the weighted average number of shares for purposes of calculating Basic EPS if there was a 2:1 stock split on August 31, 20x3.

Answer rating: 100% (QA)

a Basic EPS for the year ended December 31 20x3 Net Income 5200000 Tax Rate 28 Taxes Payable 1456000 ... View the full answer