22. At December 31, 2007, Prof Company had 450,000 shares of ordinary shares outstanding. On September 01, 2008, an additional 150,000 shares of ordinary shares were issued. In addition, Prof had P 10,000,000 of 6% convertible bonds outstanding at December 31, 2007 which are convertible into 300,000 ordinary shares. The carrying value of the bonds as of December 31, 2007 and based on a rate of 8% is P 9,205, 800. No bonds were converted into ordinary shares in 2008. The net income for the year ended December 31, 2008 was P 3,750,000. Assuming the income tax rate was 32%, what should be the diluted earnings per share for the year ended December 31, 2008 of Prof Company? a. 5.20 c. 5.44 b. 5.31 d. 7.50
22. At December 31, 2007, Prof Company had 450,000 shares of ordinary shares outstanding. On September 01, 2008, an additional 150,000 shares of ordinary shares were issued. In addition, Prof had P 10,000,000 of 6% convertible bonds outstanding at December 31, 2007 which are convertible into 300,000 ordinary shares. The carrying value of the bonds as of December 31, 2007 and based on a rate of 8% is P 9,205, 800. No bonds were converted into ordinary shares in 2008. The net income for the year ended December 31, 2008 was P 3,750,000. Assuming the income tax rate was 32%, what should be the diluted earnings per share for the year ended December 31, 2008 of Prof Company? a. 5.20 c. 5.44 b. 5.31 d. 7.50
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:22. At December 31, 2007, Prof Company had 450,000 shares of ordinary shares outstanding. On September 01, 2008, an additional
150,000 shares of ordinary shares were issued. In addition, Prof had P 10,000,000 of 6% convertible bonds outstanding at December 31,
2007 which are convertible into 300,000 ordinary shares. The carrying value of the bonds as of December 31, 2007 and based on a rate of
8% is P 9,205, 800. No bonds were converted into ordinary shares in 2008. The net income for the year ended December 31, 2008 was P
3,750,000.
Assuming the income tax rate was 32%, what should be the diluted earnings per share for the year ended December 31, 2008 of Prof
Company?
a. 5.20
c. 5.44
b. 5.31
d. 7.50
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