Information from the financial statements of Park-Rao Industries included the following at December 31, 2024: Common shares outstanding throughout the year Convertible preferred shares (convertible into 20 million shares of common) Convertible 8% bonds (convertible into 19.0 million shares of common) Park-Rao's net income for the year ended December 31, 2024, is $880 million. The income tax rate is 25%. Park-Raos paid dividends of $2 per share on its preferred stock during 2024. Required: Compute basic and diluted earnings per share for the year ended December 31, 2024. Note: Do not round Intermediate calculations. Except for per share amounts, enter your answers in millions (l.e., 10,000,000 should be entered as 10). Round "Earnings per share" answer to 2 decimal places. Basic Diluted Numerator + Denominator 100 million 55 million $ 2,400 million = Earnings per share

FINANCIAL ACCOUNTING
10th Edition
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Information from the financial statements of Park-Rao Industries included the following at December 31, 2024:
Common shares outstanding throughout the year
Convertible preferred shares (convertible into 20 million shares of common)
Convertible 8% bonds (convertible into 19.0 million shares of common)
Park-Rao's net income for the year ended December 31, 2024, is $880 million. The income tax rate is 25%. Park-Raos paid
dividends of $2 per share on its preferred stock during 2024.
Required:
Compute basic and diluted earnings per share for the year ended December 31, 2024.
Note: Do not round Intermediate calculations. Except for per share amounts, enter your answers in millions (l.e.,
10,000,000 should be entered as 10). Round "Earnings per share" answer to 2 decimal places.
Earnings per share
Basic
Diluted
Numerator
100 million
55 million
$ 2,400 million
Denominator
=
Transcribed Image Text:Information from the financial statements of Park-Rao Industries included the following at December 31, 2024: Common shares outstanding throughout the year Convertible preferred shares (convertible into 20 million shares of common) Convertible 8% bonds (convertible into 19.0 million shares of common) Park-Rao's net income for the year ended December 31, 2024, is $880 million. The income tax rate is 25%. Park-Raos paid dividends of $2 per share on its preferred stock during 2024. Required: Compute basic and diluted earnings per share for the year ended December 31, 2024. Note: Do not round Intermediate calculations. Except for per share amounts, enter your answers in millions (l.e., 10,000,000 should be entered as 10). Round "Earnings per share" answer to 2 decimal places. Earnings per share Basic Diluted Numerator 100 million 55 million $ 2,400 million Denominator =
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