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Calculate 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, e.g. 15.25.) Basic EPS $

Calculate 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, e.g. 15.25.) Basic EPS $

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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(b) Calculate 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, e.g. 15.25.) Basic EPS eTextbook and Media Save for Later Attempts: 0 of 3 used Submit Answer
Transcribed Image Text:(b) Calculate 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, e.g. 15.25.) Basic EPS eTextbook and Media Save for Later Attempts: 0 of 3 used Submit Answer
Bonita Inc. had 502,000 common shares outstanding for the entire fiscal year ended August 31, 2023. Bonita also had 106,000 $3 cumulative, no-par value preferred shares outstanding for the full year. Options were written at the start of the fiscal year to purchase 30,000 common shares at $17 per share. The average market price of Bonita's common shares during the year ended August 31, 2023 was $25 per share. The options expire in 2032, and none were actually exercised during the current year. Also outstanding for the entire year was a 7% bond with a face value of $4,600,000, convertible to 115,000 common shares. Bonita Inc.'s net income for the year was $2,702,500, and the income tax rate for the fiscal year was 40%. (a) Your answer is correct. Calculate the income effect of the dividends on the preferred shares. Dividends on preferred shares eTextbook and Media LA 318000 Attempts: 1 of 3 used
Transcribed Image Text:Bonita Inc. had 502,000 common shares outstanding for the entire fiscal year ended August 31, 2023. Bonita also had 106,000 $3 cumulative, no-par value preferred shares outstanding for the full year. Options were written at the start of the fiscal year to purchase 30,000 common shares at $17 per share. The average market price of Bonita's common shares during the year ended August 31, 2023 was $25 per share. The options expire in 2032, and none were actually exercised during the current year. Also outstanding for the entire year was a 7% bond with a face value of $4,600,000, convertible to 115,000 common shares. Bonita Inc.'s net income for the year was $2,702,500, and the income tax rate for the fiscal year was 40%. (a) Your answer is correct. Calculate the income effect of the dividends on the preferred shares. Dividends on preferred shares eTextbook and Media LA 318000 Attempts: 1 of 3 used
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