Lilac Company has 200,000 shares of ordinary shares outstanding on January 1, 2021. On March 31, 2021, 100,000 additional ordinary shares. On June 30, the company issued 10%, 100,000 convertible preference share par value of P20. The preference shares are convertible into 200,000 shares of ordinary shares. On December 31, 2021, Lilac Company reported a net income of P1,140,000 after tax and paid dividends of P300,000 to ordinary and P100,000 to preference shareholders. What is the diluted earnings per share? 3.51 3.42 3.04 3.24
Lilac Company has 200,000 shares of ordinary shares outstanding on January 1, 2021. On March 31, 2021, 100,000 additional ordinary shares. On June 30, the company issued 10%, 100,000 convertible preference share par value of P20. The preference shares are convertible into 200,000 shares of ordinary shares. On December 31, 2021, Lilac Company reported a net income of P1,140,000 after tax and paid dividends of P300,000 to ordinary and P100,000 to preference shareholders. What is the diluted earnings per share? 3.51 3.42 3.04 3.24
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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Question
![Lilac Company has 200,000 shares of ordinary shares outstanding on January
1, 2021. On March 31, 2021, 100,000 additional ordinary shares. On June 30,
the company issued 10%, 100,000 convertible preference share par value of
P20. The preference shares are convertible into 200,000 shares of ordinary
shares. On December 31, 2021, Lilac Company reported a net income of
P1,140,000 after tax and paid dividends of P300,000 to ordinary and
P100,000 to preference shareholders. What is the diluted earnings per share?
3.51
3.42
3.04
3.24](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F67d23c30-4df7-46cb-858a-f095ea685fb6%2F7e1ec167-0b61-4bee-a848-9d8e3eb8edf2%2Fefd4zws_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Lilac Company has 200,000 shares of ordinary shares outstanding on January
1, 2021. On March 31, 2021, 100,000 additional ordinary shares. On June 30,
the company issued 10%, 100,000 convertible preference share par value of
P20. The preference shares are convertible into 200,000 shares of ordinary
shares. On December 31, 2021, Lilac Company reported a net income of
P1,140,000 after tax and paid dividends of P300,000 to ordinary and
P100,000 to preference shareholders. What is the diluted earnings per share?
3.51
3.42
3.04
3.24
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