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 40 million shares of common) Convertible 8% bonds (convertible into 13.5 million shares of common) Park-Rao's net income for the year ended December 31, 2024, is $600 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 (i.e., 10,000,000 should be entered as 10). Round "Earnings per share" answer to 2 decimal places. Basic Diluted Numerator + + Denominator 100 million 65 million $1,000 million = Earnings per share
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 40 million shares of common) Convertible 8% bonds (convertible into 13.5 million shares of common) Park-Rao's net income for the year ended December 31, 2024, is $600 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 (i.e., 10,000,000 should be entered as 10). Round "Earnings per share" answer to 2 decimal places. Basic Diluted Numerator + + Denominator 100 million 65 million $1,000 million = Earnings per share
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 40 million shares of common)
Convertible 8% bonds (convertible into 13.5 million shares of common)
Park-Rao's net income for the year ended December 31, 2024, is $600 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 (i.e., 10,000,000
should be entered as 10). Round "Earnings per share" answer to 2 decimal places.
Basic
Diluted
Numerator
+
+
Denominator
100 million
65 million
$1,000 million
=
Earnings per share
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