Common Stock 2.22 Warrants 9700 Conversion Bonds 2.05 Click if you would like to Show Work for this question: Open Show Work
Common Stock 2.22 Warrants 9700 Conversion Bonds 2.05 Click if you would like to Show Work for this question: Open Show Work
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
The following information was taken from the books and records of Wildhorse, Inc.:
1. | Net Income | $488,400 | ||||
2. | Capital structure: | |||||
a. | Convertible 6% bonds. Each of the 290, $1,000 bonds is convertible into 50 shares of common stock at the present date and for the next 10 years. | 290,000 | ||||
b. | $10 par common stock, 220,000 shares issued and outstanding during the entire year. | 2,200,000 | ||||
c. | Stock warrants outstanding to buy 15,520 shares of common stock at $20 per share. | |||||
3. | Other information: | |||||
a. | Bonds converted during the year | None | ||||
b. | Income tax rate | 30% | ||||
c. | Convertible debt was outstanding the entire year | |||||
d. | Average market price per share of common stock during the year | $32 | ||||
e. | Warrants were outstanding the entire year | |||||
f. | Warrants exercised during the year | None |
![Compute diluted earnings per share. (Round answers to 2 decimal places, e.g. 52.75.)
Security
EPS
Common Stock
2.22
Warrants
9700
Conversion Bonds
2.05
Click if you would like to Show Work for this question: Open Show Work](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F05daa4d9-8c98-40c5-9fac-94c3aa32ce8f%2F27003210-2500-4ff9-ab02-352fe1cf35b6%2Fujr4wkg_processed.png&w=3840&q=75)
Transcribed Image Text:Compute diluted earnings per share. (Round answers to 2 decimal places, e.g. 52.75.)
Security
EPS
Common Stock
2.22
Warrants
9700
Conversion Bonds
2.05
Click if you would like to Show Work for this question: Open Show Work
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