Diluted Earnings Per Share (PAS 33) Problem 26. The following data are provided from the records of SMDC Inc. Net Income Ordinary Shares Actually Outstanding Share options Option price (including fair value of stock option of 10) P 5,000,000 500,000 50,000 60 75 Average market price Convertible Preference Share Capital, P100 par (20%) (cumulative) Bonds Payable (10%) Income Tax Rate Written put options 5,000,000 5,000,000 30% 12,000 100 Exercise price of Put Option 75 Average market price Note: Each P1,000 bond is convertible to 20 ordinary shares. Each preference share is convertible to 1 ordinary share.
Diluted Earnings Per Share (PAS 33) Problem 26. The following data are provided from the records of SMDC Inc. Net Income Ordinary Shares Actually Outstanding Share options Option price (including fair value of stock option of 10) P 5,000,000 500,000 50,000 60 75 Average market price Convertible Preference Share Capital, P100 par (20%) (cumulative) Bonds Payable (10%) Income Tax Rate Written put options 5,000,000 5,000,000 30% 12,000 100 Exercise price of Put Option 75 Average market price Note: Each P1,000 bond is convertible to 20 ordinary shares. Each preference share is convertible to 1 ordinary share.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Diluted Earning per share
Transcribed Image Text:Diluted Earnings Per Share (PAS 33)
Problem 26. The following data are provided from the records of SMDC Inc.
Net Income
P5,000,000
500,000
50,000
60
Ordinary Shares Actually Outstanding
Share options
Option price (including fair value of stock option of 10)
Average market price
75
Convertible Preference Share Capital, P100 par (20%) (cumulative) 5,000.000
Bonds Payable (10%)
Income Tax Rate
5,000,000
30%
Written put options
Exercise price of Put Option
Average market price
12,000
100
75
Note: Each P1,000 bond is convertible to 20 ordinary shares. Each preference share is convertible to
1 ordinary share.
Required: Based on your audit, determine the following:
_1. Net Income for Basic Earnings per Share
2. Shares Outstanding for Basic Earnings per Share
3. Basic Earnings per Share
4. Potential Ordinary Shares from Share Options
5. Potential Ordinary Shares from Written Put Options
6. Dilutive Securities
7. Antidilutive Securities
8. Net Income for Diluted Eamings per Share
9. Shares Outstanding for Diluted Earnings per Share
10. Diluted Eamings per Share
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