16 .During 2021, Sysco Corp. had 1,000,000 shares of common stock and 60,000 shares of 10% preferred stock outstanding. The preferred stock does not have cumulative or convertible features. Sysco declared and paid cash dividends of $500,000 and $250,000 to common and preferred shareholders, respectively, during 2021.On January 1, 2020, Sysco issued $2,200,000 of convertible 6% bonds at face value. Each $1,000 bond is convertible into five common shares.Sysco's net income for the year ended December 31, 2021, was $6.00 million. The income tax rate is 20%.
16 .During 2021, Sysco Corp. had 1,000,000 shares of common stock and 60,000 shares of 10% preferred stock outstanding. The preferred stock does not have cumulative or convertible features. Sysco declared and paid cash dividends of $500,000 and $250,000 to common and preferred shareholders, respectively, during 2021.On January 1, 2020, Sysco issued $2,200,000 of convertible 6% bonds at face value. Each $1,000 bond is convertible into five common shares.Sysco's net income for the year ended December 31, 2021, was $6.00 million. The income tax rate is 20%.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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16 .During 2021, Sysco Corp. had 1,000,000 shares of common stock and 60,000 shares of 10%
On January 1, 2020, Sysco issued $2,200,000 of convertible 6%
Sysco's net income for the year ended December 31, 2021, was $6.00 million. The income tax rate is 20%.
What will Sysco report as diluted earnings per share for 2021, rounded to the nearest cent?
Multiple Choice
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$6.04.
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$5.69.
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$5.93.
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None of these answer choices are correct.
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