Hanson Co. had 200,000 ordinary shares, 20,000 shares of convertible preference shares, and €1,000,000 of 10% convertible bondsoutstanding during 2022. The preference shares are convertible into 40,000 ordinary shares. During 2022, Hanson paid dividends of€1.20 per share on the ordinary shares and €4 per share on the preference shares. Each €1,000 bond is convertible into 45 ordinaryshares. The net income for 2022 was €800,000 and the income tax rate was 30%.Diluted earnings per share for 2022 is (rounded to the nearest penny)

1.Calculate the net income available to ordinary shareholders:First, we need to subtract the…

Answered: Hanson Co. had 200,000 ordinary shares,…

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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In 2024, Blossom, Inc. issued 91000 shares of $100 par value convertible preferred stock for $102 per share. Each share of preferred stock can be converted into three shares of Blossom's $25 par value common stock at the option of the preferred stockholder. In August 2025, all of the preferred stock was converted into common stock. The market value of the common stock at the date of the conversion was $30 per share. What amount will be credited to additional paid-in capital from common stock as a result of the conversion? $2457000 O $2275000 O $1456000 O $1092000
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Auto Motors Plc is a listed automotive company financed by a mixture of debt and equity. The company’s finance department is about to undertake its annual revision of the weighted average cost of capital (WACC) for use in all of the company’s investment appraisals for the forthcoming year. The following information on the company’s long-term financing was available as at 31 May 2023. £m 220 million ordinary shares of 25 pence each 55 Share premium 23 Revaluation reserve 26 Retained earnings 33 12% loan stock (2025) 100 The loan stock interest for the year has just been paid. Interest on this loan will be paid on 31 May 2024 and 2025. On 31st of May 2025,…
please answer both the parts within 30 minutes.
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Buffalo Corporation has outstanding 2,200 $1,000 bonds, each convertible into 50 shares of $10 par value common stock. The bonds are converted on December 31, 2017, when the unamortized discount is $21,200 and the market price of the stock is $21 per share.Record the conversion using the book value approach
Throughout the calendar year 2020, Kali Corporation has 400,000 common shares outstanding (no preferred shares issued). In addition, Collie has 5,000, 20-year, 7% bonds outstanding, issued at par in 2018. Each $1,000 bond is convertible into 20 common shares after June 30, 2021. Collie reported net income of $ 600,000 for calendar 2020. Their income tax rate is 30%. Required: Calculate basic and diluted earnings per share for 2020. Solution: Please explain the solution Basic earnings per share: = $ 1.50 Incremental effect of conversion of bonds = $2.45 The conversion of the bonds would be antidilutive. No diluted EPS calculation is required. The basic and diluted earnings per share of $1
At 31 December 2021 Wyndhams calculated its basic earnings per share as 30 pence per share, based on earnings of £900,000 and 3 million £1 ordinary shares. It has a tax rate of 25%. In addition to the ordinary shares, Wyndham has £3m of 4% convertible loan stock. This is convertible any time from 1 January 2021 – 31 December 2022 at a rate of 1 ordinary share for each £5 of loan stock. None had been converted by the year end. a) Calculate the diluted EPS for year ended 31 December 2021. Answer to one decimal place Wyndhams issued £2m 8% convertible preference shares on 1 January 2021, convertible between January 2024 and January 2025 at a rate of 1 ordinary share per £5 of preference shares. b) Combine the information on the convertible loan stock and the convertible preference shares to calculate the diluted EPS for year ended 31 December 2021. Answer to one decimal place
Dengar
On January 1, 2023, Blue Corp. had 182,000 common shares outstanding. On April 1, 2023, 18,200 common shares were issued and on September 1, 2023, Blue bought back 28,200 treasury shares. The market price of the common shares averaged $50 during 2023. The corporation's income tax rate is 40%. During 2023, there were 28,200 call options to buy common shares at $40 a share outstanding; and there were 18,200, $8, no par value, cumulative and convertible preferred shares outstanding. Each preferred share is convertible into three common shares. During 2022, the corporation had issued $2,020,000 of 9% convertible bonds at face value. Each $1,000 bond is convertible into 20 common shares. The corporation reported $729,000 net income for calendar 2023. Calculate diluted earnings per share for 2023. Complete the schedule below. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Round earnings per share to 2 decimal places, e.g. 52.75.)…

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