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On December 31, 2023, Chi Chow Company had outstanding 570,000 shares of common stock and 57,000 shares of 8% cumulative preferred stock (par $10). • February 28, 2024, issued an additional 53,000 shares of common stock ● September 1, 2024, 10,700 shares were retired. • A 12% stock dividend was declared and distributed on July 1, 2024. At year-end, there were fully vested incentive stock options outstanding for 47,000 shares of common stock (adjusted for the stock dividend). The exercise price was $16. The market price of the common stock averaged $20 during the year. Also outstanding were $1,000,000 face amount of 10% convertible bonds issued in 2021 and convertible into 67,000 common shares (adjusted for the stock dividend). Net income was $1,070,000. 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. Basic Diluted Earnings per share

On December 31, 2023, Chi Chow Company had outstanding 570,000 shares of common stock and 57,000 shares of 8% cumulative preferred stock (par $10). • February 28, 2024, issued an additional 53,000 shares of common stock ● September 1, 2024, 10,700 shares were retired. • A 12% stock dividend was declared and distributed on July 1, 2024. At year-end, there were fully vested incentive stock options outstanding for 47,000 shares of common stock (adjusted for the stock dividend). The exercise price was $16. The market price of the common stock averaged $20 during the year. Also outstanding were $1,000,000 face amount of 10% convertible bonds issued in 2021 and convertible into 67,000 common shares (adjusted for the stock dividend). Net income was $1,070,000. 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. Basic Diluted Earnings per share

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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On December 31, 2023, Chi Chow Company had outstanding 570,000 shares of common stock and 57,000 shares of 8% cumulative preferred stock (par $10). ● February 28, 2024, issued an additional 53,000 shares of common stock September 1, 2024, 10,700 shares were retired. A 12% stock dividend was declared and distributed on July 1, 2024. At year-end, there were fully vested incentive stock options outstanding for 47,000 shares of common stock (adjusted for the stock dividend). The exercise price was $16. The market price of the common stock averaged $20 during the year. Also outstanding were $1,000,000 face amount of 10% convertible bonds issued in 2021 and convertible into 67,000 common shares (adjusted for the stock dividend). Net income was $1,070,000. 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. Basic Diluted Earnings per share
Transcribed Image Text:On December 31, 2023, Chi Chow Company had outstanding 570,000 shares of common stock and 57,000 shares of 8% cumulative preferred stock (par $10). ● February 28, 2024, issued an additional 53,000 shares of common stock September 1, 2024, 10,700 shares were retired. A 12% stock dividend was declared and distributed on July 1, 2024. At year-end, there were fully vested incentive stock options outstanding for 47,000 shares of common stock (adjusted for the stock dividend). The exercise price was $16. The market price of the common stock averaged $20 during the year. Also outstanding were $1,000,000 face amount of 10% convertible bonds issued in 2021 and convertible into 67,000 common shares (adjusted for the stock dividend). Net income was $1,070,000. 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. Basic Diluted Earnings per share
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