Information from the financial statements of Ames Fabricators, Inc., included the following:Common sharesConvertible preferred shares (convertible into 42,000 shares ofcommon)14,4008% convertible bonds (convertible into 30,000 shares of common) $1,000,000BasicDilutedDecember 31Numerator I Denominator =7/2021100,000Ames's net income for the year ended December 31, 2021, is $540,000. The income tax rate is 25%. Ames paid dividends of $5 pershare on its preferred stock during 2021.=Required:Compute basic and diluted earnings per share for the year ended December 31, 2021. (Enter your answers in thousands (Forexample, 100,000 should be entered as 100). Do not round intermediate calculations.)Earnings per Share2020100,00014,400$1,000,000

The monetary worth of an organization's earnings per outstanding share of common stock is known as…

Answered: nformation from the financial…

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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The information below pertains to TV Johnny Company for Year 11: Net income for the year $1,200,000 7% convertible bonds issued at par ($1,000 bond); each bond convertible into 30 shares of common stock 2,000,000 6% convertible, cumulative preferred stock, $100 par value; each share convertible into 3 shares of common stock 4,000,000 Common stock, $10 par value 6,000,000 Income tax rate for Year 11 20% Average market price of common stock during Year 11 $25 per share Market price of common stock on December 31, Year 11 $30 per share There were no changes during Year 11 in the number of common shares, preferred shares, or convertible bonds outstanding. There is no treasury stock. The company also has common…
The table below shows a partial view of Webster Corporation's balancesheet. Webster CorporationBalance Sheet (partial)At December 31, 2021 Long-term debt Notes payable 10% $2,000,00010% convertible bonds payable 2,500,00012% convertible bonds payable 3,000,000Total long-term debt $7,500,000 Stockholders' equity 6% cumulative, convertiblepreferred stock, $100 par, 50,000shares outstanding. 5,000,000 Common stock, $1 par, 600,000shares outstanding. 600,000Additional paid-in capital 2,500,000 Retained earnings 8,500,000Total stockholders' equity $16,600,000 Notes and Assumptions December 31, 20211. Options were granted in December 2020 to purchase 25,000 shares of common stock at $25 per share. The average market price of common stock during 2021 was $35 per share. All options are still outstanding atthe end of 2021 2. Both the 10 percent and 12 percent convertible bonds were issued in2020 at face value. Each convertible bond is convertible into 50 shares of common stock.…
Beckham Pet Food Suppliers reported $7,300,000 net income for the current year. The company indicated that it has $6,600,000, 6% convertible debt issued at par and $550,000 par value, 8% nonconvertible, cumulative preferred shares outstanding. The firm did not declare dividends for the current year. It issued the bonds on May 31, and the preferred shares were outstanding for the entire year. Based on this information, determine the numerator of the earnings per share fraction for both basic earnings per share and diluted earnings per share. Assume that all financial instruments described are dilutive. The tax rate is 35%.
Pharoah Corporation has net income for the year of $423,780 and a weighted average number of common shares outstanding during the period of 100,900 shares. The company has two convertible debenture bond issues outstanding. One is a 6% issue sold at 100 (total $1 million) in a prior year and convertible into 20,100 common shares. The other is a 10% issue sold at 100 (total $500,000) on April 1 of the current year and convertible into 35,700 common shares. The tax rate is 30%. Calculate basic earnings per share and diluted earnings per share and show how they would be presented in the financial statements. (Round earnings per share answers to 2 decimal places, eg 15.25) Net income for the year Earnings per share: Basic earnings per share Diluted earnings per share eTextbook and Media List of Accounts $ $ 423700 Save for Later Last saved 1 second ago Saved work will be auto-submitted on the due date. Auto- submission can take up to 10 minutes. Attempts: unlimited Submit Anwwer P
sarasota corporation has 9% convertible bonds outstanding. it recorded interest expense (net of income taxes) Oven $6,300 on these bonds during the year. The bonds are convertible into 2500 shares of common stock. compute the impact of these convertible bonds on Sarasota diluted earnings per share.
Domanico Co., which produces and sells biking equipment, is financed as follows: Bonds payable, 6% (issued at face amount) Preferred $2.00 stock, $100 par Common stock, $25 par $5,000,000 5,000,000 5,000,000 Income tax is estimated at 40% of income. Determine the earnings per share of common stock, assuming that the income before bond interest and income tax is (a) $600,000, (b) $800,000, and (c) $1,200,000.
Relenta Company reported an after-tax net profit of Rs. 3,17,000 for 2022. On April 1, 2021 the company had 96000 equity shares of Rs.10 par value and 1000 of 12%, Rs.100 convertible cumulative preference shares. Information about transactions that affected the share capital are as follows: 1. On July 1, 2021, Company declared bonus of 1 share for every 4 shares held. 2. Issued 60,000 shares at a premium of Rs.25 on October 1, 2021 On March 31, 2022, company declared preference dividends of Rs.12000. Required: 1. Analyze the basic Earning per share (EPS) for 2022. 2. Compute the diluted earning per share (EPS) assuming each preference share will be converted into 10 equity shares. 3. Comment upon the difference between the two.
A
During the current year, High Corporation had 3 million shares of common stock outstanding. $5,000,000 of 6% convertible bonds were issued at face amount at the beginning of the year. High reported income before tax of $4 million and net income of $3 million for the year. The bonds are convertible into 625,000 shares of common. What is diluted EPS (rounded)? A. $0.89. B. $0.91. C. $1.00. D. $1.08
Problem: Earnings per Share. (Pls help and provide supporting computations)
7. At December 31, 2024, DEF Corporation had outstanding 200,000 shares of common stock. Also outstanding were 80,000 shares of preferred stock convertible into 64,000 common shares and $2,000,000 of 10% bonds convertible into 30,000 common shares. DEF's net income for the year ended December 31, 2024, is $1,140,000. The income tax rate is 25%. DEF paid dividends of $3 per share on its preferred stack during 2024. Required: Compute basic and diluted earnings per share for the year ended December 31, 2024, considering possible antidilutive effects.
The following information was taken from the books and records of Cullumber, Inc.: 1. Net Income $391,400 2. Capital structure: a. Convertible 6% bonds. Each of the 290, $1,000 bonds is convertible into 50 shares of common stock at the present date and for the next 10 years. 290,000 b. $10 par common stock, 190,000 shares issued and outstanding during the entire year. 1,900,000 c. Stock warrants outstanding to buy 15,040 shares of common stock at $20 per share. 3. Other information: a. Bonds converted during the year None b. Income tax rate 30% c. Convertible debt was outstanding the entire year d. Average market price per share of common stock during the year $32 e. Warrants were outstanding the entire year f. Warrants exercised during the year Compute diluted earnings per share

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