Steven Limited's net income for the year ended December 31, 2023 was $650,250 and there were 92,000 common shares outstanding during the entire year. Steven has the following two convertible securities outstanding: 10% convertible bonds (each $1,000 bond is convertible into 20 common shares) $200,000 5% convertible $100 par value cumulative preferred shares (each share is convertible into two common shares) $125,000 Both convertible securities were issued at face value in 2020. There were no conversions during 2023, and Steven's income tax rate is 25%. (a) (b) Calculate basic earnings per share. (For simplicity, ignore the requirement to record the debt and equity portions of the convertible bond separately). (Round answer to 2 decimal places, e.g. 15.25.) Basic earnings per share eTextbook and Media
Steven Limited's net income for the year ended December 31, 2023 was $650,250 and there were 92,000 common shares outstanding during the entire year. Steven has the following two convertible securities outstanding: 10% convertible bonds (each $1,000 bond is convertible into 20 common shares) $200,000 5% convertible $100 par value cumulative preferred shares (each share is convertible into two common shares) $125,000 Both convertible securities were issued at face value in 2020. There were no conversions during 2023, and Steven's income tax rate is 25%. (a) (b) Calculate basic earnings per share. (For simplicity, ignore the requirement to record the debt and equity portions of the convertible bond separately). (Round answer to 2 decimal places, e.g. 15.25.) Basic earnings per share eTextbook and Media
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Steven Limited's net income for the year ended December 31, 2023 was $650,250 and there were 92,000 common shares
outstanding during the entire year. Steven has the following two convertible securities outstanding:
10% convertible bonds (each $1,000 bond is convertible into 20 common shares)
$200,000
5% convertible $100 par value cumulative preferred shares (each share is convertible into two common shares) $125,000
Both convertible securities were issued at face value in 2020. There were no conversions during 2023, and Steven's income tax rate is
25%.
(a)
(b)
Calculate basic earnings per share. (For simplicity, ignore the requirement to record the debt and equity portions of the
convertible bond separately). (Round answer to 2 decimal places, e.g. 15.25.)
Basic earnings per share
eTextbook and Media
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