On January 1, 2024, Jaewoo Industries had outstanding 660,000 common shares ($1 par) that originally sold for $30 per share, and 9,000 shares of 10% cumulative preferred stock ($100 par), convertible into 90,000 common shares. • On October 1, 2024, Jaewoo sold and issued an additional 16,000 shares of common stock at $33. • At December 31, 2024, there were 25,000 Incentive stock options outstanding, issued in 2023, and exercisable after one year for 25,000 shares of common stock at an exercise price of $40. • The market price of the common stock at year-end was $58. • During the year, the price of the common shares had averaged $50. • Net Income was $800,000. The tax rate for the year was 25%. Required: Compute basic and diluted EPS for the year ended December 31, 2024. Note: Do not round Intermediate calculations. Except for per share amounts, enter your answers in thousands (1.e., 10,000 should be entered as 10). Round "Earnings per share" answer to 2 decimal places. Basic Diluted Numerator $ $ 710 800 + Denominator 664 = = Earnings per share 1.07 1.05 69 $
On January 1, 2024, Jaewoo Industries had outstanding 660,000 common shares ($1 par) that originally sold for $30 per share, and 9,000 shares of 10% cumulative preferred stock ($100 par), convertible into 90,000 common shares. • On October 1, 2024, Jaewoo sold and issued an additional 16,000 shares of common stock at $33. • At December 31, 2024, there were 25,000 Incentive stock options outstanding, issued in 2023, and exercisable after one year for 25,000 shares of common stock at an exercise price of $40. • The market price of the common stock at year-end was $58. • During the year, the price of the common shares had averaged $50. • Net Income was $800,000. The tax rate for the year was 25%. Required: Compute basic and diluted EPS for the year ended December 31, 2024. Note: Do not round Intermediate calculations. Except for per share amounts, enter your answers in thousands (1.e., 10,000 should be entered as 10). Round "Earnings per share" answer to 2 decimal places. Basic Diluted Numerator $ $ 710 800 + Denominator 664 = = Earnings per share 1.07 1.05 69 $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Problem 19-17 (Algo) EPS; options; convertible preferred; additional shares [LO19-4, 19-5, 19-6, 19-7, 19-
8, 19-9]
On January 1, 2024, Jaewoo Industries had outstanding 660,000 common shares ($1 par) that originally sold for $30 per share, and
9,000 shares of 10% cumulative preferred stock ($100 par), convertible into 90,000 common shares.
• On October 1, 2024, Jaewoo sold and issued an additional 16,000 shares of common stock at $33.
• At December 31, 2024, there were 25,000 incentive stock options outstanding, issued in 2023, and exercisable after one year
for 25,000 shares of common stock at an exercise price of $40.
• The market price of the common stock at year-end was $58.
• During the year, the price of the common shares had averaged $50.
• Net Income was $800,000. The tax rate for the year was 25%.
Required:
Compute basic and diluted EPS for the year ended December 31, 2024.
Note: Do not round Intermediate calculations. Except for per share amounts, enter your answers in thousands (1.e., 10,000 should
be entered as 10). Round "Earnings per share" answer to 2 decimal places.
Basic
Diluted
Numerator
$
$
710
800 +
Denominator
664 =
Earnings per share
1.07
1.05
$
69](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffc5dd71d-51fa-441f-9ebc-9ba33f9dfb0d%2F0753c95a-1f25-45c7-9b21-1d6486713ff4%2F0yvg33t_processed.png&w=3840&q=75)
Transcribed Image Text:Problem 19-17 (Algo) EPS; options; convertible preferred; additional shares [LO19-4, 19-5, 19-6, 19-7, 19-
8, 19-9]
On January 1, 2024, Jaewoo Industries had outstanding 660,000 common shares ($1 par) that originally sold for $30 per share, and
9,000 shares of 10% cumulative preferred stock ($100 par), convertible into 90,000 common shares.
• On October 1, 2024, Jaewoo sold and issued an additional 16,000 shares of common stock at $33.
• At December 31, 2024, there were 25,000 incentive stock options outstanding, issued in 2023, and exercisable after one year
for 25,000 shares of common stock at an exercise price of $40.
• The market price of the common stock at year-end was $58.
• During the year, the price of the common shares had averaged $50.
• Net Income was $800,000. The tax rate for the year was 25%.
Required:
Compute basic and diluted EPS for the year ended December 31, 2024.
Note: Do not round Intermediate calculations. Except for per share amounts, enter your answers in thousands (1.e., 10,000 should
be entered as 10). Round "Earnings per share" answer to 2 decimal places.
Basic
Diluted
Numerator
$
$
710
800 +
Denominator
664 =
Earnings per share
1.07
1.05
$
69
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