At December 31, 2016, the financial statements of Hollingsworth Industries included the following: Net income for 2016 $560 million Bonds payable, 10%, convertible into 36 million shares of common stock $300 million Common stock: Shares outstanding on January 1 400 million Treasury shares purchased for cash on September 1 30 million Additional data: The bonds payable were issued at par in 2014. The tax rate for 2016 was 40%. Required: Compute basic and diluted EPS for the year ended December 31, 2016.
At December 31, 2016, the financial statements of Hollingsworth Industries included the following: Net income for 2016 $560 million Bonds payable, 10%, convertible into 36 million shares of common stock $300 million Common stock: Shares outstanding on January 1 400 million Treasury shares purchased for cash on September 1 30 million Additional data: The bonds payable were issued at par in 2014. The tax rate for 2016 was 40%. Required: Compute basic and diluted EPS for the year ended December 31, 2016.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 23MCQ
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At December 31, 2016, the financial statements of Hollingsworth Industries included the following:
Net income for 2016 $560 million
Bonds payable, 10%, convertible into 36 million shares of common stock $300 million
Common stock:
Shares outstanding on January 1 400 million
Treasury shares purchased for cash on September 1 30 million
Additional data:
The bonds payable were issued at par in 2014. The tax rate for 2016 was 40%.
Required:
Compute basic and diluted EPS for the year ended December 31, 2016.
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