Camiguin company reported the following capital structure on December 31, 2018: Ordinary share capital 110 000 shares convertible noncumulative preference share capital 20 000 shares 10% convertible bonds payable P2 000 000 share options to purchase 20 000 shares at P15 were oustanding. Market price of Camiguin share was P22 at December 31, 2018 and averaged P20 during the year. No value was assigned to the share options. the entity paid the annual dividend of P5 on the preference share. the preference shares are convertible into 20 000 ordinary shares. the 10% bonds are convertible into 30 000 ordinary shares. the net income for 2018 is P650 000. the income tax rate is 30%. what amount should be reported as diluted earnings per share? a.5.00 b.4.76 c.4.19 d.4.27
Camiguin company reported the following capital structure on December 31, 2018: Ordinary share capital 110 000 shares convertible noncumulative preference share capital 20 000 shares 10% convertible bonds payable P2 000 000 share options to purchase 20 000 shares at P15 were oustanding. Market price of Camiguin share was P22 at December 31, 2018 and averaged P20 during the year. No value was assigned to the share options. the entity paid the annual dividend of P5 on the preference share. the preference shares are convertible into 20 000 ordinary shares. the 10% bonds are convertible into 30 000 ordinary shares. the net income for 2018 is P650 000. the income tax rate is 30%. what amount should be reported as diluted earnings per share? a.5.00 b.4.76 c.4.19 d.4.27
Camiguin company reported the following capital structure on December 31, 2018: Ordinary share capital 110 000 shares convertible noncumulative preference share capital 20 000 shares 10% convertible bonds payable P2 000 000 share options to purchase 20 000 shares at P15 were oustanding. Market price of Camiguin share was P22 at December 31, 2018 and averaged P20 during the year. No value was assigned to the share options. the entity paid the annual dividend of P5 on the preference share. the preference shares are convertible into 20 000 ordinary shares. the 10% bonds are convertible into 30 000 ordinary shares. the net income for 2018 is P650 000. the income tax rate is 30%. what amount should be reported as diluted earnings per share? a.5.00 b.4.76 c.4.19 d.4.27
Camiguin company reported the following capital structure on December 31, 2018: Ordinary share capital 110 000 shares convertible noncumulative preference share capital 20 000 shares 10% convertible bonds payable P2 000 000
share options to purchase 20 000 shares at P15 were oustanding. Market price of Camiguin share was P22 at December 31, 2018 and averaged P20 during the year. No value was assigned to the share options. the entity paid the annual dividend of P5 on the preference share. the preference shares are convertible into 20 000 ordinary shares. the 10% bonds are convertible into 30 000 ordinary shares. the net income for 2018 is P650 000. the income tax rate is 30%. what amount should be reported as diluted earnings per share? a.5.00 b.4.76 c.4.19 d.4.27
Definition Definition Type of stock which is granted priority over dividend distributions as compared to common stockholders. Preferred stocks also do not carry any voting rights. Notably, in a case where a company is going to be liquidated, preferred stockholders have a priority claim on the value of assets of the company as quoted in the balance sheet, as compared to the common stockholders.
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