Headland Corporation issued 20-year, $9,600,000 face value, 9% convertible debentures on January 1, 2020. The bonds have a par value of $1.000, with interest payable semiannually. The Initial conversion ratio is 10.1, and in 3 years it will increase to 12:1. At the date of issue, the bonds were sold at 106. Bond premium is amortized on a straight-line basis. Headland's effective tax rates Net income in 2020 was $28,000,000, and the company had 12,740,000 common shares issued and outstanding during the entire year Compute both basic and diluted earnings per share. (Round answers to 2 decimal places, eg 2.55) Basic earnings per share Diluted earnings per share 40%

Headland Corporation issued 20-year, $9,600,000 face value, 9% convertible debentures on January 1, 2020. The bonds have a par value of $1.000, with interest payable semiannually. The Initial conversion ratio is 10.1, and in 3 years it will increase to 12:1. At the date of issue, the bonds were sold at 106. Bond premium is amortized on a straight-line basis. Headland's effective tax rates Net income in 2020 was $28,000,000, and the company had 12,740,000 common shares issued and outstanding during the entire year Compute both basic and diluted earnings per share. (Round answers to 2 decimal places, eg 2.55) Basic earnings per share Diluted earnings per share 40%

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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