Francine Limited was incorporated with share capital consisting of 100,000 common shares. In January 2023, it issued 20,000 mandatorily convertible preferred shares. The terms of the prospectus for the issuance of the preferred shares require the convertible preferred shares to be converted into common shares, at the rate of one preferred share for one common share, during the fourth quarter of 2024. The preferred shares pay an annual dividend of $4 per share. Assume that for the fiscal year ended December 31, 2023, the company made an after-tax profit of $140,000. Calculate the 2023 earnings per share. Round to the nearest cent.

Francine Limited was incorporated with share capital consisting of 100,000 common shares. In January 2023, it issued 20,000 mandatorily convertible preferred shares. The terms of the prospectus for the issuance of the preferred shares require the convertible preferred shares to be converted into common shares, at the rate of one preferred share for one common share, during the fourth quarter of 2024. The preferred shares pay an annual dividend of $4 per share. Assume that for the fiscal year ended December 31, 2023, the company made an after-tax profit of $140,000. Calculate the 2023 earnings per share. Round to the nearest cent.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Question

Francine Limited was incorporated with share capital consisting of 100, 000 common shares. In January 2023, it issued
20,000 mandatorily convertible preferred shares. The terms of the prospectus for the issuance of the preferred shares
require the convertible preferred shares to be converted into common shares, at the rate of one preferred share for
one common share, during the fourth quarter of 2024. The preferred shares pay an annual dividend of $4 per share.
Assume that for the fiscal year ended December 31, 2023, the company made an after - tax profit of $140,000.
Calculate the 2023 earnings per share. Round to the nearest cent.

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