Problem 1: On December 31, 2020, Sirius Corp issued 600 million shares of common stock and 10 million shares of 8%,$100 par value cumulative, nonconvertible preferred stock. No share transactions took place in 2021 but Siriusrepurchased 30 million shares of its common stock on August 31, 2022 and declared a 10% common stock dividend onSeptember 27, 2022. Sirius reported a net income of $140 million for 2021 and $180 million for 2022. No cash dividendswere declared in 2021 or 2022.Required: Calculate Basic EPS for 2022.Len the aditar todo

EPS is referred to as Earnings Per Share. EPS can be classified into two types,:Basic EPSDiluted EPS…

Answered: Problem 1: On December 31, 2020, Sirius…

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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1. Rahman Company began 2022 with 690,000 shares of common stock outstanding. On September 1, 2022 there was a 2 for 1 stock split. On November 1, 2022, the company repurchased 270,000 shares of treasury stock. 2. Net Income for 2022 was $18,990,000 and the corporate tax rate is 25%. 3. 4% convertible preferred stock was outstanding all year. Each share has a par value of $100 and the total par value is $18,000,000. Each preferred share is convertible into 3 shares of common stock. 4. In 2015, 8% bonds (maturing in 10 years) were issued at 98. The discount is being amortized on a straight-line basis. The bonds have a $1,000 par value each for a total par value of $12,000,000. Each bond is convertible into 2 shares of common stock. 5. On March 1, 2022, Rahman had a second issuance of convertible bonds at their stated rate of 9%. Each $1,000 bond is convertible into 6 shares of common stock. The total par is $15,000,000. 6.…
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