Problem 19-14 (Static) EPS; convertible preferred stock; convertible bonds; order of entry [LO19-7, 19-9, 19-10] Information from the financial statements of Park-Rao Industries included the following at December 31, 2024: Common shares outstanding throughout the year Convertible preferred shares (convertible into 32 million shares of common) Convertible 8% bonds (convertible into 13.5 million shares of common) Park-Rao's net income for the year ended December 31, 2024, is $520 million. The income tax rate is 25%. Park-Raos paid dividends of $2 per share on its preferred stock during 2024. Required: Compute basic and diluted earnings per share for the year ended December 31, 2024. Note: Do not round intermediate calculations. Except for per share amounts, enter your answers in millions (i.e., 10,000,000 should be entered as 10). Round "Earnings per share" answer to 2 decimal places. Basic Diluted $ $ X Answer is complete but not entirely correct. Earnings per share Numerator 400 520✓ + Denominator = 100 146 X = = 100 million 60 million $ 900 million $ $ 4.00 3.12 X

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Problem 19-14 (Static) EPS; convertible preferred stock; convertible bonds; order of entry [LO19-7, 19-9,
19-10]
Information from the financial statements of Park-Rao Industries included the following at December 31, 2024:
Common shares outstanding throughout the year
Convertible preferred shares (convertible into 32 million shares of common)
Convertible 8% bonds (convertible into 13.5 million shares of common)
Park-Rao's net income for the year ended December 31, 2024, is $520 million. The income tax rate is 25%. Park-Raos paid dividends of
$2 per share on its preferred stock during 2024.
Required:
Compute basic and diluted earnings per share for the year ended December 31, 2024.
Note: Do not round intermediate calculations. Except for per share amounts, enter your answers in millions (i.e., 10,000,000
should be entered as 10). Round "Earnings per share" answer to 2 decimal places.
Basic
Diluted
$
GAGA
$
X Answer is complete but not entirely correct.
Earnings per
share
Numerator
400 +
520
+
Denominator =
100
146 X
B $
$
100 million
60 million
$900 million
B
4.00
3.12 X
Transcribed Image Text:Problem 19-14 (Static) EPS; convertible preferred stock; convertible bonds; order of entry [LO19-7, 19-9, 19-10] Information from the financial statements of Park-Rao Industries included the following at December 31, 2024: Common shares outstanding throughout the year Convertible preferred shares (convertible into 32 million shares of common) Convertible 8% bonds (convertible into 13.5 million shares of common) Park-Rao's net income for the year ended December 31, 2024, is $520 million. The income tax rate is 25%. Park-Raos paid dividends of $2 per share on its preferred stock during 2024. Required: Compute basic and diluted earnings per share for the year ended December 31, 2024. Note: Do not round intermediate calculations. Except for per share amounts, enter your answers in millions (i.e., 10,000,000 should be entered as 10). Round "Earnings per share" answer to 2 decimal places. Basic Diluted $ GAGA $ X Answer is complete but not entirely correct. Earnings per share Numerator 400 + 520 + Denominator = 100 146 X B $ $ 100 million 60 million $900 million B 4.00 3.12 X
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