Your employer just named you hotshot accountant of the year and assigned you the task of calculating
Question:
Your company has 2 sets of options outstanding. Both sets were outstanding for the full year. The first set includes 2,000 options and each option can be exchanged for one share of common stock at an exercise price of 20$. The second set of options includes 1000 options and each option can be exchanged for one share of common stock at an exercise price 28$
On June 20, 2018 bonds were issued at par with face value of $2,000,000 and a 7% stated rate. Each bond has a $1,000 face value and is convertible into 30 share of common stock.
Your company also has 40,000 shares of 6% convertible, cumulative preferred stock ($100 par value per share) which was outstanding for the full year. Each Preferred share can be converted into 2 shares of common stock. No preferred dividends have been declared for the current year or the preceding 2 years.
International Financial Reporting and Analysis
ISBN: 978-1408075012
5th edition
Authors: David Alexander, Anne Britton, Ann Jorissen