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C. A co

C. A co

FINANCIAL ACCOUNTING
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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c. A company has $20,912,543 of net income during the year and 934,887 common shares outstanding, 96,508 of which are treasury shares, and 2,000,000 authorized shares. Assume the company has 1,000 convertible bonds with a total face value of $1,000,000 since the beginning of the year. The bonds were issued at par with a 5% coupon rate and each bond converts to 2 shares of stock. The company has an effective tax rate of 21%. Compute diluted EPS. Enter your answer in dollars rounded to 2 decimal places with no $ or commas
Transcribed Image Text:c. A company has $20,912,543 of net income during the year and 934,887 common shares outstanding, 96,508 of which are treasury shares, and 2,000,000 authorized shares. Assume the company has 1,000 convertible bonds with a total face value of $1,000,000 since the beginning of the year. The bonds were issued at par with a 5% coupon rate and each bond converts to 2 shares of stock. The company has an effective tax rate of 21%. Compute diluted EPS. Enter your answer in dollars rounded to 2 decimal places with no $ or commas
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