On January 1, 2025, Nash Company issued 10-year, $1,810,000 face value, 6% bonds, at par. Each $1,000 bond is convertibleinto 15 shares of Nash common stock. Nash's net income in 2025 was $403,200, and its tax rate was 20%. The companyhad 96,000 shares of common stock outstanding throughout 2025. None of the bonds were converted in 2025.a. Compute diluted earnings per share for 2025. (Round answer to 2 decimal places, e.g. 2.55.)Diluted earnings per share $b. Compute diluted earnings per share for 2025, assuming the same facts as above, except that $960,000 of 6% convertible preferredstock was issued instead of the bonds. Each $100 preferred share is convertible into 5 shares of Nash common stock. (Round answer to2 decimal places, e.g. 2.55.)Diluted earnings per share

Diluted Earnings Per Share (EPS) accounts for potential share dilution from convertible securities…

Answered: a. Compute diluted earnings per share…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The owners' equity accounts for Vulcano International are shown here: Common stock ($1 par value) Capital surplus Retained earnings Total owners' equity a. Assume the company's stock currently sells for $47 per share and a stock dividend of 8 percent is declared. How many new shares will be distributed? Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32. New shares issued $ 80,000 200,000 660,000 $ 940,000 Show the new balance for each equity account. Note: Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32. Common stock Capital surplus Retained earnings Total owners' equity
Need help with 3 and 4 3. If two years’ preferred dividends are in arrears at the current date, what is the book value per share of common stock? 4. If two years’ preferred dividends are in arrears at the current date and the board of directors declares cash dividends of $13,800, what total amount will be paid to the preferred and to the common shareholders?
Holdup Bank has an issue of preferred stock with a $1.93 stated dividend that just sold for $27.73 per share. What is the bank's cost of preferred stock? Enter the answer with 4 decimals (e.g. 0.1234).
ll. Subject:- Accounting
T6.
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1.
With the information provided answer the following questions. a) Calculate the income effect of the dividends on the preferred shares. b) Calculate the basic earnings per share (For simplicity, ignore the requirement to record the debt and equity portions of the convertible bond separately).(Round answer to 2 decimal places) c) Calculate the after tax interest on bonds converted d) Calculate an incremental per share effect for the 9% bonds. Do this by calculating the incremental numerator effect, incremental denominator effect and the EPS. e) Calculate the proceeds from the assumed exercise of 100,000 options. f) Calculate the incremental shares outstanding upon the exercise of options. g) Rank the potentially dilutive securities from most dilutive to least dilutive. (9% bonds and Options)
What is the diluted earnings per share?(Present answer in 2 decimal places, example: x.xx)
Hh2.
U the common shares is $165 each and market price of the preferred is $230 each. (Round to nearest dollar.) b. Prepare the journal entry for the issuance when only the market price of the common stock is known and it is $170 per share. E14.6 (LO 1, 2) (Stock Issuances and Repurchase) Lindsey Hunter Corporation is authorized to issue 50,000 shares of $5 par value common stock. During 2025, Lindsey Hunter took part in the following selected transactions. a. Issued 5,000 shares of stock at $45 per share, less costs related to the issuance of the stock totaling $7,000. b. Issued 1,000 shares of stock for land appraised at $50,000. The stock was actively traded on a national stock exchange at approximately $46 per share on the date of issuance. c. Purchased 500 shares of treasury stock at $43 per share. The treasury shares purchased were issued in 2021 at $40 per share. d. Retired the treasury shares purchased in part (c). Instructions Prepare the journal entries to record these…
5. The Preferred Shares account has a balance of $100,000. There are 500 convertible preferred shares, each convertible to 4 common shares. On a day that the preferred shares have an average cost of $200 and a market value of $230, one half of the preferred shares are converted to common shares. Common shares are trading at $60. Which statement is true? a. Retained Earnings will be debited by $2,500. b. The Common Shares account will be credited for $50,000. C. An income statement account, Loss on Conversion, will be debited by $2,500. d. The Common Shares account will be credited for $60,000.

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