(a) Compute diluted earnings per share for 2022. (Round answer to 2 decimal places, es. 2.55.) Diluted earnings per share
(a) Compute diluted earnings per share for 2022. (Round answer to 2 decimal places, es. 2.55.) Diluted earnings per share
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 26E: Tama Companys capital structure consists of common stock and convertible bonds. At the beginning of...
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![On January 1, 2022, Shamrock SA issued 10-year, €1,870,000 face value, 6% bonds, at par. Each €1,000 bond is convertible
into 15 ordinary shares of Shamrock. Shamrock's net income in 2023 was €462,800, and its tax rate was 40%. Interest expense on
the liability component in 2023 was €130,900. The company had 104,000 ordinary shares outstanding throughout 2022. None of
the bonds were converted in 2022.
(a) Compute diluted earnings per share for 2022. (Round answer to 2 decimal places, eg. 2.55.)
Diluted earnings per share
(b) Compute diluted earnings per share for 2022, assuming the same facts as above, except that €1,040,000 of 6% convertible
preference shares were issued instead of the bonds. Each €100 preference share is convertible into 5 ordinary shares of
Shamrock. (Round answer to 2 decimal places, eg. 2.55.)
Diluted earnings per share](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc545fee3-c781-4433-8f21-ace5c12795d6%2F90326db1-575b-4673-8724-cb3074370bd1%2Fnn7y76a_processed.jpeg&w=3840&q=75)
Transcribed Image Text:On January 1, 2022, Shamrock SA issued 10-year, €1,870,000 face value, 6% bonds, at par. Each €1,000 bond is convertible
into 15 ordinary shares of Shamrock. Shamrock's net income in 2023 was €462,800, and its tax rate was 40%. Interest expense on
the liability component in 2023 was €130,900. The company had 104,000 ordinary shares outstanding throughout 2022. None of
the bonds were converted in 2022.
(a) Compute diluted earnings per share for 2022. (Round answer to 2 decimal places, eg. 2.55.)
Diluted earnings per share
(b) Compute diluted earnings per share for 2022, assuming the same facts as above, except that €1,040,000 of 6% convertible
preference shares were issued instead of the bonds. Each €100 preference share is convertible into 5 ordinary shares of
Shamrock. (Round answer to 2 decimal places, eg. 2.55.)
Diluted earnings per share
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