The following information is taken from Sylvester Corporation's financial statements at year end Bond Payable, 10%,...

 

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The following information is taken from Sylvester Corporation's financial statements at year end Bond Payable, 10%, convertible par value $500,000, net of discount Bond Payable, 8%, convertible par value $100,000 $480,000 $100,000 Preferred A Shares, $2.50, cumulative, non-convertible; 20,000 shares outstanding $200,000 Preferred B Shares, $1.50, non-cumulative, convertible into common shares at the rate of five common shares for each share preferred; 5,000 shares outstanding Conversion Rights - Convertible Bond Contributed Surplus - Stock Options Common Shares, no par; 1,000,000 authorized, 670,000 issued and outstanding. $1,300,000 $50,000 $150,000 $18,000 Income after tax from continuing operations Income after tax from discontinued operations Net Incorhe $950,000 $14,000 $964,000 Additional information is as follows: No dividends were declared last year Total dividends declared this year were $600,000 10% Bonds, each $1,000 bond is convertible into 75 common shares. Interest expense on the bonds for the year was $57,600 including bond discount. 8% Bonds were issued at par on May 1; each $1,000 bond is convertible into 30 common shares. • 28,000 options to purchase one common share per option at $4 per share were outstanding at the beginning of the year. On October 1, 8,000 options were exercised. The average market price of the common shares for the past year was $10. • Common Shares activity was as follows: 450,000 shares outstanding on January 1; dedared a 20% stock dividend on March 1, 120,000 additional shares issued for cash on July 1, Oct 1 8,000 options were exercised. • The tax'rate is 40%, and Sylvester has a Dec 31 year end. Required: Calculate basic and fully diluted EPS. (Show all calculations and round to the nearest cent) The following information is taken from Sylvester Corporation's financial statements at year end Bond Payable, 10%, convertible par value $500,000, net of discount Bond Payable, 8%, convertible par value $100,000 $480,000 $100,000 Preferred A Shares, $2.50, cumulative, non-convertible; 20,000 shares outstanding $200,000 Preferred B Shares, $1.50, non-cumulative, convertible into common shares at the rate of five common shares for each share preferred; 5,000 shares outstanding Conversion Rights - Convertible Bond Contributed Surplus - Stock Options Common Shares, no par; 1,000,000 authorized, 670,000 issued and outstanding. $1,300,000 $50,000 $150,000 $18,000 Income after tax from continuing operations Income after tax from discontinued operations Net Incorhe $950,000 $14,000 $964,000 Additional information is as follows: No dividends were declared last year Total dividends declared this year were $600,000 10% Bonds, each $1,000 bond is convertible into 75 common shares. Interest expense on the bonds for the year was $57,600 including bond discount. 8% Bonds were issued at par on May 1; each $1,000 bond is convertible into 30 common shares. • 28,000 options to purchase one common share per option at $4 per share were outstanding at the beginning of the year. On October 1, 8,000 options were exercised. The average market price of the common shares for the past year was $10. • Common Shares activity was as follows: 450,000 shares outstanding on January 1; dedared a 20% stock dividend on March 1, 120,000 additional shares issued for cash on July 1, Oct 1 8,000 options were exercised. • The tax'rate is 40%, and Sylvester has a Dec 31 year end. Required: Calculate basic and fully diluted EPS. (Show all calculations and round to the nearest cent)

Answer rating: 100% (QA)

Diluted EPS net incom prefered dividends weighted average number of shares ... View the full answer