In 2024, Bramble Enterprises issued, at par, 60 $1,000, 9% bonds, each convertible into 100 shares of common stock. Bramble had revenues of $18,000 and expenses other than interest and taxes of $10,100 for 2025. (Assume that the tax rate is 20%.) Throughout 2025, 2,400 shares of common stock were outstanding; none of the bonds was converted or redeemed. (a) Compute diluted earnings per share for 2025. (Round answer to 2 decimal places, e.g. 2.55.) Earnings per share $ (b) Assume the same facts as those assumed for part (a), except that the 60 bonds were issued on September 1, 2025 (rather than in 2024), and none have been converted or redeemed. Compute diluted earnings per share for 2025. (Round answer to 2 decimal places, e.g. 2.55.) Earnings per share $ (c) Assume the same facts as assumed for part (a), except that 20 of the 60 bonds were actually converted on July 1, 2025. Compute diluted earnings per share for 2025. (Round answer to 2 decimal places, e.g. 2.55.) Earnings per share $
In 2024, Bramble Enterprises issued, at par, 60 $1,000, 9% bonds, each convertible into 100 shares of common stock. Bramble had revenues of $18,000 and expenses other than interest and taxes of $10,100 for 2025. (Assume that the tax rate is 20%.) Throughout 2025, 2,400 shares of common stock were outstanding; none of the bonds was converted or redeemed.
(a) Compute diluted earnings per share for 2025. (Round answer to 2 decimal places, e.g. 2.55.)
Earnings per share $
(b) Assume the same facts as those assumed for part (a), except that the 60 bonds were issued on September 1, 2025 (rather than in 2024), and none have been converted or redeemed. Compute diluted earnings per share for 2025. (Round answer to 2 decimal places, e.g. 2.55.)
Earnings per share $
(c) Assume the same facts as assumed for part (a), except that 20 of the 60 bonds were actually converted on July 1, 2025. Compute diluted earnings per share for 2025. (Round answer to 2 decimal places, e.g. 2.55.)
Earnings per share $
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