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 32 million shares of common) Convertible 8% bonds (convertible into 13.5 million shares of common) 100 million 60 million $ 900 million Park-Rao's net income for the year ended December 31, 2024, is $520 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 = 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 32 million shares of common) Convertible 8% bonds (convertible into 13.5 million shares of common) 100 million 60 million $ 900 million Park-Rao's net income for the year ended December 31, 2024, is $520 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 = Earnings per share
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 25E
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Question
![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 32 million shares of common)
Convertible 8% bonds (convertible into 13.5 million shares of common)
100 million
60 million
$ 900 million
Park-Rao's net income for the year ended December 31, 2024, is $520 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
=
Earnings per share](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F54e8c682-be67-4ef0-bd1d-cf8b2e543b76%2Fd8f828ac-61f4-4834-bf18-0bd2c8ac73a5%2Fmtwj4pl_processed.png&w=3840&q=75)
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 32 million shares of common)
Convertible 8% bonds (convertible into 13.5 million shares of common)
100 million
60 million
$ 900 million
Park-Rao's net income for the year ended December 31, 2024, is $520 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
=
Earnings per share
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