Oriole Corporation earned net income of $235,000 in 2023 and had 100,000 common shares outstandingthroughout the year. Also outstanding all year was $850,000 of 10% bonds that are convertible into 10,000common shares. Oriole's tax rate is 35%.Calculate Oriole's 2023 diluted earnings per share. For simplicity, ignore the IFRS requirement to record thedebt and equity components of the bonds separately. (Round answer to 2 decimal places, e.g. 15.25.)Diluted earnings per shareI

Earning per share means the profit earned after taxes per share outstanding.Diluted earning per…

Answered: Oriole Corporation earned net income of…

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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2. Oppnox Company reported net income of $750,000 for the year ended 31 December 20X1. The company had a weighted average of 690,000 shares of common stock outstanding. In addition, the company has only one potentially dilutive security: $50,000 of 6 percent convertible bonds, convertible into a total of 10,000 shares. Assuming a tax rate of 30 percent, calculate Oppnox's basic and diluted EPS.
A company has the following information in its statement of financial position. Ghs'm Ordinary shares of Ghs5 250 12% unsecured bonds 100 The ordinary shares are currently quoted at Ghs 13 each and the bonds are trading at Ghs720 per Ghs1,000 nominal. The ordinary dividend of Ghs 1.50 has just been paid with an expected growth rate of 10%. Assume corporation tax is currently 16.5%. Calculate the WACC for this company
FarCry Industries, a maker of telecommunications equipment, has 2 million shares of common stock outstanding, 1 million shares of preferred stock outstanding, and 10,000 bonds. Suppose the common shares are selling for $27 per share, the preferred shares are selling for $14.50 per share, and the bonds are selling for 98 percent of par.What weight should you use for debt in the computation of FarCry’s WACC? (Round your answer to 2 decimal places.)
Alciatore Company reported a net income of $150,000 in 2018. The weighted-average number of commonshares outstanding for 2018 was 40,000. The average stock price for 2018 was $33. Assume an income tax rateof 40%.Required:For each of the following independent situations, indicate whether the effect of the security is antidilutive fordiluted EPS.1. 10,000 shares of 7.7% of $100 par convertible, cumulative preferred stock. Each share may be converted intotwo common shares.2. 8% convertible 10-year, $500,000 of bonds, issued at face value. The bonds are convertible to 5,000 shares ofcommon stock.3. Stock options exercisable at $30 per share after January 1, 2020.4. Warrants for 1,000 common shares with an exercise price of $35 per share.5. A contingent agreement to issue 5,000 shares of stock to the company president if net income is at least$125,000 in 2019.
Edwards Construction currently has debt outstanding with a market value of $116,000 and a cost of 12 percent. The company has EBIT of $13,920 that is expected to continue in perpetuity. Assume there are no taxes. a-1. What is the value of the company's equity? (Do not round intermediate calculations. Leave no cell blank - be certain to enter "0" wherever required.) a- What is the debt-to-value ratio? (Do not round intermediate calculations and round 2. your answer to the nearest whole number, e.g., 32.) b. What are the equity value and debt-to-value ratio if the company's growth rate is 5 percent? (Do not round intermediate calculations and round your "Debt-to- value" answer to 3 decimal places, e.g., 32.161.) c. What are the equity value and debt-to-value ratio if the company's growth rate is 8 percent? (Do not round intermediate calculations and round your "Debt-to- value" answer to 3 decimal places, e.g., 32.161.) Answer is complete but not entirely correct. a-1. Value of equity…
As equal instalment payments are made on a long-term loan, both the interest portion and the principal portion decrease O the interest and principal portions remain the same. O the interest portion increases and the principal portion decreases. O the interest portion decreases and the principal portion increases. QUESTION 20 For last year, Bonita Corporation reported net income of $710,000, and paid $174,000 in dividends for the 250,000 preferred shares issued. The weighted average of common shares was 1,675,000 shares. Bonita's basic earnings per share was $0.42 $0.28 O $0.32 O $0.10
Calculating Basic and Diluted EPS. TJX, Inc., an apparel retailer, reported net income (amounts in thousands) of 568504 for Year 4. The weighted average of common shares outstanding during Year 4 was 490373 shares. TJX, Inc., subtracted interest expense net of tax saving on convertible debt of 362.1. If the convertible debt had been converted into common stock, it would have increased the weighted-average common shares outstanding by 17869 shares. TJX, Inc., has outstanding stock options that, if exercised, would increase the weighted average of common shares outstanding by 6734 shares. Compute the following metrics for Year 4: (a) Basic Earnings Per Share (BEPS) (b) Diluted Earnings Per Share (DEPS)
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(EPS with Convertible Bonds, Various Situations) In 2016, Chirac Enterprises issued, at par, 60 $1,000, 8% bonds, each convertible into 100 shares of common stock. Chirac had revenues of $17,500 and expenses other than interest and taxes of $8,400 for 2017. (Assume that the tax rate is 40%.) Throughout 2017, 2,000 shares of common stock were outstanding; none of the bonds was converted or redeemed.Instructions(a) Compute diluted earnings per share for 2017.(b) Assume the same facts as those assumed for part (a), except that the 60 bonds were issued on September 1, 2017 (rather than in 2016), and none have been converted or redeemed. Compute diluted earnings per share for 2017.(c) Assume the same facts as assumed for part (a), except that 20 of the 60 bonds were actually converted on July 1, 2017. Compute diluted earnings per share for 2017.
MV Corporation has debt with market value of $97 million, common equity with a book value of $105 million, and preferred stock worth $23 million outstanding. Its common equity trades at $46 per share, and the firm has 6.1 million shares outstanding. What weights should MV Corporation use in its WACC? The debt weight for the WACC calculation is %. (Round to two decimal places.)
FarCry Industries, a maker of telecommunications equipment, has 6 million shares of common stock outstanding, 4 million shares of preferred stock outstanding, and 45,000 bonds. Suppose the common shares are selling for $28 per share, the preferred shares are selling for $15.00 per share, and the bonds are selling for 99 percent of par What weight should you use for debt in the computation of FarCry's WACC? (Round your answer to 2 declmal places.) Weight used Mc Prev 2 of 8 Type here to search 五

During the current year, High Corporation had 3 million shares of common stock outstanding. $5,000,000 of 6% convertible bonds were issued at face amount at the beginning of the year. High reported income before tax of $4 million and net income of $3 million for the year. The bonds are convertible into 625,000 shares of common. What is diluted EPS (rounded)? A. $0.89. B. $0.91. C. $1.00. D. $1.08

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