Paris Co. has a December 31 year-end date. Data for 2021 shows: • There were 60,000, $3, cumulative preferred shares outstanding as of January 1, 2021; each preferred share is convertible into 3 common shares. • There were 370,000 common shares outstanding as of January 1, 2021. • On April 30, 2021, 60,000 common shares were issued for $10 each. No other shares were issued in 2021. • On November 1, 2021, 30,000 common shares were reacquired from shareholders and canceled. • Paris Co.'s net income for 2021 is $1,000,000, which includes a $100,000 after tax discontinued loss. • Dividends declared in 2021 on the preferred stock were $1 per share. • 25,000 warrants were outstanding throughout 2021; each warrant permits the owner to buy 2 common shares for $20 per share. • A $2,000,000, 6% convertible bond was issued on June 1, 2021; each $1,000 bond is convertible into 40 common shares. • The income tax rate for 2021 is 30%. • The average market price of common shares was $25 per share during 2021. Required: Calculate the necessary earnings per share amounts for 2021.

Paris Co. has a December 31 year-end date. Data for 2021 shows: • There were 60,000, $3, cumulative preferred shares outstanding as of January 1, 2021; each preferred share is convertible into 3 common shares. • There were 370,000 common shares outstanding as of January 1, 2021. • On April 30, 2021, 60,000 common shares were issued for $10 each. No other shares were issued in 2021. • On November 1, 2021, 30,000 common shares were reacquired from shareholders and canceled. • Paris Co.'s net income for 2021 is $1,000,000, which includes a $100,000 after tax discontinued loss. • Dividends declared in 2021 on the preferred stock were $1 per share. • 25,000 warrants were outstanding throughout 2021; each warrant permits the owner to buy 2 common shares for $20 per share. • A $2,000,000, 6% convertible bond was issued on June 1, 2021; each $1,000 bond is convertible into 40 common shares. • The income tax rate for 2021 is 30%. • The average market price of common shares was $25 per share during 2021. Required: Calculate the necessary earnings per share amounts for 2021.

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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