Round Calculations to 3 decimal places and round final answer to 2 decimal places. Vaughn Horizon Corp had the following items, all of which were outstanding throughout the entire fiscal year ending September 30,2024:860,000 common shares300,000 $3 cumulative, no-par value preferred sharesOptions to purchase 100,000 common shares at $12 per share. The average market price of Vaughn's common shares duringthe year was $20 per share. None of the options were exercised or expired during fiscal 2024.9% bond with a face value of $1,900,000, convertible to 49,000 common shares.Vaughn's net income for fiscal 2024 was $7,694,000, and its tax rate was 15%. Preferred dividends had been paid in all previous fiscalyears. Basic EPSSub TotalSub TotalDiluted EPSLA$NumeratorDenominator$$EPS

Answered: Basic EPS Sub Total Sub Total SA $…

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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Round Calculations to 3 decimal places and round final answer to 2 decimal places.

Vaughn Horizon Corp had the following items, all of which were outstanding throughout the entire fiscal year ending September 30,
2024:
860,000 common shares
300,000 $3 cumulative, no-par value preferred shares
Options to purchase 100,000 common shares at $12 per share. The average market price of Vaughn's common shares during
the year was $20 per share. None of the options were exercised or expired during fiscal 2024.
9% bond with a face value of $1,900,000, convertible to 49,000 common shares.
Vaughn's net income for fiscal 2024 was $7,694,000, and its tax rate was 15%. Preferred dividends had been paid in all previous fiscal
years.

Basic EPS
Sub Total
Sub Total
Diluted EPS
LA
$
Numerator
Denominator
$
$
EPS

Expert Solution

Step 1: Define diluted EPS display

Dilution from convertible securities and other potential shares that may be issued if certain financial instruments are converted or exercised is taken into account when calculating diluted EPS, which displays a company's earnings per share.

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