The following information was taken from the books and records of Ivanhoe, Inc.: 1. Net Income $409,200 2. Capital structure: a. Convertible 6% bonds. Each of the 280, $1,000 bonds is convertible into 50 shares of common stock at the present date and for the next 10 years. 280,000 b. $10 par common stock, 220,000 shares issued and outstanding during the entire year. 2,200,000 c. Stock warrants outstanding to buy 14,560 shares of common stock at $20 per share. 3. Other information: a. Bonds converted during the year None b. Income tax rate 30% c. Convertible debt was outstanding the entire year d. Average market price per share of common stock during the year $32 e. Warrants were outstanding the entire year f. Warrants exercised during the year None Compute basic earnings per share. (Round answer to 2 decimal places, e.g. 52.75.) Basic earnings per share $ Compute diluted earnings per share. (Round answers to 2 decimal places, e.g. 52.75.) Security EPS Common Stock $ Warrants $ Conversion Bonds $
The following information was taken from the books and records of Ivanhoe, Inc.:
1. Net Income $409,200
2. Capital structure:
a. Convertible 6% bonds. Each of the 280, $1,000 bonds is convertible into 50 shares of common stock at the present date and for the next 10 years. 280,000
b. $10 par common stock, 220,000 shares issued and outstanding during the entire year. 2,200,000
c. Stock warrants outstanding to buy 14,560 shares of common stock at $20 per share.
3. Other information: a. Bonds converted during the year None
b. Income tax rate 30%
c. Convertible debt was outstanding the entire year
d. Average market price per share of common stock during the year $32
e. Warrants were outstanding the entire year
f. Warrants exercised during the year None
Compute basic earnings per share. (Round answer to 2 decimal places, e.g. 52.75.)
Basic earnings per share $
Compute diluted earnings per share. (Round answers to 2 decimal places, e.g. 52.75.)
Security EPS
Common Stock $
Warrants $
Conversion Bonds $
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