In 2022, Blossom Ltd. issued $55,000 of 8% bonds at par, with each $1,000 bond being convertible into 100 common shares. The company had revenues of $79,800 and expenses of $43,300 for 2023, not including interest and tax. (Assume a tax rate of 20%.) Throughout 2023, 1,800 common shares were outstanding, and none of the bonds were converted or redeemed. (For simplicity, assume that the convertible bonds' equity element is not recorded.)
In 2022, Blossom Ltd. issued $55,000 of 8% bonds at par, with each $1,000 bond being convertible into 100 common shares. The company had revenues of $79,800 and expenses of $43,300 for 2023, not including interest and tax. (Assume a tax rate of 20%.) Throughout 2023, 1,800 common shares were outstanding, and none of the bonds were converted or redeemed. (For simplicity, assume that the convertible bonds' equity element is not recorded.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:In 2022, Blossom Ltd. issued $55,000 of 8% bonds at par, with each $1,000 bond being convertible into 100 common shares. The
company had revenues of $79,800 and expenses of $43,300 for 2023, not including interest and tax. (Assume a tax rate of 20%.)
Throughout 2023, 1,800 common shares were outstanding, and none of the bonds were converted or redeemed. (For simplicity,
assume that the convertible bonds' equity element is not recorded.)
Transcribed Image Text:Assume that 7 of the 55 bonds were converted on July 1, 2023. Calculate diluted earnings per share for the year ended December
31, 2023. (Round answer to 2 decimal places, e.g. 15.25.)
Diluted earnings per share
LA
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