East year, XYZ Inc. reported net income of $220,000 and had 56,000 shares of common stock and 1,000 share of convertible preferred stock outstanding for the entire year. Each preferred share is $100 par value, pays 5% dividend, and is convertible to 25 shares of common stock. XYZ Inc. also had 200 convertible bonds oustanding for the entire year. Each convertible bond is $1000 par value, pays 3% interest and is convertible to 100 shares of common stock. The tax rate is 30%. What is the diluted earning per share?
East year, XYZ Inc. reported net income of $220,000 and had 56,000 shares of common stock and 1,000 share of convertible preferred stock outstanding for the entire year. Each preferred share is $100 par value, pays 5% dividend, and is convertible to 25 shares of common stock. XYZ Inc. also had 200 convertible bonds oustanding for the entire year. Each convertible bond is $1000 par value, pays 3% interest and is convertible to 100 shares of common stock. The tax rate is 30%. What is the diluted earning per share?
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 10MC
Related questions
Question
![Last year, XYZ Inc. reported net income of $220,000 and had 56,000 shares
of common stock and 1,000 share of convertible preferred stock
outstanding for the entire year. Each preferred share is $100 par value, pays
5% dividend, and is convertible to 25 shares of common stock. XYZ Inc. also
had 200 convertible bonds oustanding for the entire year. Each convertible
bond is $1000 par value, pays 3% interest and is convertible to 100 shares of
common stock. The tax rate is 30%. What is the diluted earning per share?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F62123a70-90cf-417d-ad13-9832cd45bca7%2Fd540df97-ecf4-46b3-a2bf-633d50b50bc5%2Fjhj21dh_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Last year, XYZ Inc. reported net income of $220,000 and had 56,000 shares
of common stock and 1,000 share of convertible preferred stock
outstanding for the entire year. Each preferred share is $100 par value, pays
5% dividend, and is convertible to 25 shares of common stock. XYZ Inc. also
had 200 convertible bonds oustanding for the entire year. Each convertible
bond is $1000 par value, pays 3% interest and is convertible to 100 shares of
common stock. The tax rate is 30%. What is the diluted earning per share?
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 4 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Recommended textbooks for you
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning