bonds have a par value of $1,000, with interest payable annually. The current conversion ratio is 13:1, and in 2 years to 17:1. At the date of issue, the bonds were sold at 99. Bond discount is amortized on a straight-line basis. Sandhill's was 20%. Net income in 2020 was $9,950,000, and the company had 1,960,000 shares outstanding during the entire Compute both basic and diluted earnings per share. (Round answers to 2 decimal places, eg. $2.55.) Basic earnings per share Diluted earnings per share $ $
bonds have a par value of $1,000, with interest payable annually. The current conversion ratio is 13:1, and in 2 years to 17:1. At the date of issue, the bonds were sold at 99. Bond discount is amortized on a straight-line basis. Sandhill's was 20%. Net income in 2020 was $9,950,000, and the company had 1,960,000 shares outstanding during the entire Compute both basic and diluted earnings per share. (Round answers to 2 decimal places, eg. $2.55.) Basic earnings per share Diluted earnings per share $ $
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 6PA: Aggies Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1,...
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Debenture Valuation
A debenture is a private and long-term debt instrument issued by financial, non-financial institutions, governments, or corporations. A debenture is classified as a type of bond, where the instrument carries a fixed rate of interest, commonly known as the ‘coupon rate.’ Debentures are documented in an indenture, clearly specifying the type of debenture, the rate and method of interest computation, and maturity date.
Note Valuation
It is the process to determine the value or worth of an asset, liability, debt of the company. It can be determined by many processes or techniques. Many factors can impact the valuation of an asset, liability, or the company, like:
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