Entity A had the following instrumentsoutstanding all throughout 20x1:12%convertible bonds payable issued at faceamount, each P1,000 bond is convertibleinto 30 ordinary sharesP2,000,000Ordinary shares, P10 par,100,000 shares issued and outstanding1,000,000Profit for the year is P1,200,000.Entity A's income tax rate is 30%.What is thediluted earnings per share in 20x1? *O 8.558.15O 8.05O 8.98

Name: Entity A had the following instrumentsoutstanding all throughout 20x1
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Description: Entity A had the following instrumentsoutstanding all throughout 20x1:12%convertible bonds payable issued at faceamount, each P1,000 bond is convertibleinto 30 ordinary sharesP2,000,000Ordinary shares, P10 par,100,000 shares issued and outstanding1,

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Entity A had the following instruments outstanding all throughout 20x1:12% convertible bonds payable issued at face amount, each P1,000 bond is convertible into 30 ordinary shares P2,000,0000rdinary shares, P10 par, 100,000 shares issued and outstanding 1,000,000Profit for the year is P1,200,000. Entity A's income tax rate is 30%.What is the diluted earnings per share in 20x1? * 8.55 O 8.15 O 8.05 O 8.98

Entity A had the following instruments outstanding all throughout 20x1:12% convertible bonds payable issued at face amount, each P1,000 bond is convertible into 30 ordinary shares P2,000,0000rdinary shares, P10 par, 100,000 shares issued and outstanding 1,000,000Profit for the year is P1,200,000. Entity A's income tax rate is 30%.What is the diluted earnings per share in 20x1? * 8.55 O 8.15 O 8.05 O 8.98

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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CMS Corporation's balance sheet as of today is as follows: Long-term debt (bonds, at par) Preferred stock Common stock ($10 par) Retained earnings Total debt and equity $10,000,000 2.000.000 10,000,000 4.000.000 $26.000,000 The bonds have a 6.6% coupon rate, payable semiannually, and a par value of $1,000. They mature exactly 10 years from today. The yield to maturity is 12%, so the bonds now sell below par. What is the current market value of the firm's debt? Select the correct answer. Oa. $6,900,480 Ob.$6,901,361 Oc$6,899,600 d. $6,903,121 Oe. $6,902,241
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Charter Corp. issued1,662 debentures with a $1,000 par value and 6% coupon rate. a. What dollar amount of interest per bond can an investor expect to receive each year from Charter? b. What is Charter's total interest expense per year associated with this bond issue? c. Assuming that Charter pays a 21% corporate tax, what is the company's net after-tax interest cost associated with this bond issue?
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On January 2, 2014, a calendar-year corporation sold 12% bonds with a face value of $200,000. These bonds mature in six years, and interest is paid semi-annually on June 30 and December 31. The bonds were yield 10%. What was the issue price of the bond? a. $217,726.50 b. $183,232.31 c. $200,000.00 d. $344,000.00 e. None of the above