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On January 01, 2021, EFG Company had 100,000 P50 par value ordinary shares outstanding. In addition, on January 01, 2021, the entity had issued 15,000 convertible cumulative 10% preference shares with P100 par value. These preference shares were converted on August 01, 2021. Each preference share was converted into 4 ordinary shares. The preference dividends for the entire year were paid in full before conversion. The entity had no other potentially dilutive securities. Net income for the year was P6,400,000.   Basic EPS a. 62.50 b. 40 c. 51.20 d. 50 e. 39.06

On January 01, 2021, EFG Company had 100,000 P50 par value ordinary shares outstanding. In addition, on January 01, 2021, the entity had issued 15,000 convertible cumulative 10% preference shares with P100 par value. These preference shares were converted on August 01, 2021. Each preference share was converted into 4 ordinary shares. The preference dividends for the entire year were paid in full before conversion. The entity had no other potentially dilutive securities. Net income for the year was P6,400,000.   Basic EPS a. 62.50 b. 40 c. 51.20 d. 50 e. 39.06

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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On January 01, 2021, EFG Company had 100,000 P50 par value ordinary shares outstanding. In addition, on January 01, 2021, the entity had issued 15,000 convertible cumulative 10% preference shares with P100 par value. These preference shares were converted on August 01, 2021. Each preference share was converted into 4 ordinary shares. The preference dividends for the entire year were paid in full before conversion. The entity had no other potentially dilutive securities. Net income for the year was P6,400,000.

 

Basic EPS

a. 62.50
b. 40
c. 51.20
d. 50
e. 39.06

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