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On December 31, 2023, Bae Company had outstanding 520,000 shares of common stock and 52,000 shares of 6% cumulative preferred stock (par $10). The preferred stock was convertible into 42,000 shares of common stock. On February 28, 2024, Bae issued an additional 48,000 shares of common stock. A 11% stock dividend was declared and distributed on July 1, 2024. On September 1, 2024, 10,200 shares were retired. At year-end, there were fully vested incentive stock options outstanding for 42,000 shares of common stock (adjusted for the stock dividend). The exercise price was $19. The market price of the common stock averaged $21 during the year. Also outstanding were $1,000,000 face amount of 10% convertible bonds issued in 2021 and convertible into 62,000 common shares (adjusted for the stock dividend). Net income was $1,020,000. The tax rate for the year was 25%. Required: Compute basic and diluted EPS for the year ended December 31, 2024. Note: Round your answers to 2 decimal places. Answer is complete but not entirely correct. Earnings per share Basic $ 1.59 Diluted S 1.33X

On December 31, 2023, Bae Company had outstanding 520,000 shares of common stock and 52,000 shares of 6% cumulative preferred stock (par $10). The preferred stock was convertible into 42,000 shares of common stock. On February 28, 2024, Bae issued an additional 48,000 shares of common stock. A 11% stock dividend was declared and distributed on July 1, 2024. On September 1, 2024, 10,200 shares were retired. At year-end, there were fully vested incentive stock options outstanding for 42,000 shares of common stock (adjusted for the stock dividend). The exercise price was $19. The market price of the common stock averaged $21 during the year. Also outstanding were $1,000,000 face amount of 10% convertible bonds issued in 2021 and convertible into 62,000 common shares (adjusted for the stock dividend). Net income was $1,020,000. The tax rate for the year was 25%. Required: Compute basic and diluted EPS for the year ended December 31, 2024. Note: Round your answers to 2 decimal places. Answer is complete but not entirely correct. Earnings per share Basic $ 1.59 Diluted S 1.33X

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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answer must be in table format or i will give down vote

 

On December 31, 2023, Bae Company had outstanding 520,000 shares of common stock and 52,000 shares of 6% cumulative preferred stock (par $10). The preferred stock was convertible into 42,000 shares of common stock. On February 28, 2024, Bae issued an additional 48,000 shares of common stock. A 11% stock dividend was declared and distributed on July 1, 2024. On September 1, 2024, 10,200 shares were retired. At year-end, there were fully vested incentive stock options outstanding for 42,000 shares of common stock (adjusted for the stock dividend). The exercise price was $19. The market price of the common stock averaged $21 during the year. Also outstanding were $1,000,000 face amount of 10% convertible bonds issued in 2021 and convertible into 62,000 common shares (adjusted for the stock dividend). Net income was $1,020,000. The tax rate for the year was 25%. Required: Compute basic and diluted EPS for the year ended December 31, 2024. Note: Round your answers to 2 decimal places. Answer is complete but not entirely correct. Earnings per share Basic $ 1.59 Diluted S 1.33X
Transcribed Image Text:On December 31, 2023, Bae Company had outstanding 520,000 shares of common stock and 52,000 shares of 6% cumulative preferred stock (par $10). The preferred stock was convertible into 42,000 shares of common stock. On February 28, 2024, Bae issued an additional 48,000 shares of common stock. A 11% stock dividend was declared and distributed on July 1, 2024. On September 1, 2024, 10,200 shares were retired. At year-end, there were fully vested incentive stock options outstanding for 42,000 shares of common stock (adjusted for the stock dividend). The exercise price was $19. The market price of the common stock averaged $21 during the year. Also outstanding were $1,000,000 face amount of 10% convertible bonds issued in 2021 and convertible into 62,000 common shares (adjusted for the stock dividend). Net income was $1,020,000. The tax rate for the year was 25%. Required: Compute basic and diluted EPS for the year ended December 31, 2024. Note: Round your answers to 2 decimal places. Answer is complete but not entirely correct. Earnings per share Basic $ 1.59 Diluted S 1.33X
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