Marigold Inc. had net income for the current year ending December 31, 2020 of $872,880. During the entire year, there were 507,000 common shares outstanding. The company had two classes of preferred shares outstanding: the Class A preferred shares were $1.92 cumulative shares of which 11,000 were outstanding, and were convertible to common shares at a rate of 1:1. There were 100,000 $5.92 Class B non-cumulative preferred shares outstanding that were also convertible at a rate of 1:1. Marigold had outstanding a $1,000,000, 6% bond issued in 2009 that was convertible to 22,000 common shares. The company also had outstanding a $1,000,000, 4% bond issued in 2010 that was convertible to 26,000 common shares. No dividends were declared or paid this year. Marigold’s tax rate is 39%. Determine an incremental per share effect for 2009 bonds Potentially dilutive security Incremental Numerator Effect Incremental Denominator Effect EPS 2009 Bonds $ $
Marigold Inc. had net income for the current year ending December 31, 2020 of $872,880. During the entire year, there were 507,000 common shares outstanding. The company had two classes of
Determine an incremental per share effect for 2009 bonds
| Potentially dilutive security | Incremental Numerator Effect |
Incremental Denominator Effect |
EPS | |||
| 2009 Bonds | $ | $ |
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