The information below pertains to Skysong Company for 2026. Net income for the year 8% convertible bonds issued at par ($1,000 per bond); each bond is convertible into 30 shares of common stock 6% convertible, cumulative preferred stock, $100 par value; each share is convertible into 3 shares of common stock Common stock, $10 par value Tax rate for 2026 Average market price of common stock Basic earnings per share $ b. Compute diluted earnings per share for 2026. (Round answer to 2 decimal places, e.g. 2.55.) $1,230,00 Diluted earnings per share $ 2,090,00 3,830,00 6,110,00 There were no changes during 2026 in the number of common shares, preferred shares, or convertible bonds outstanding. There is no treasury stock. The company also has common stock options (granted in a prior year) to purchase 80,600 shares of common stock at $20 per share. a. Compute basic earnings per share for 2026. (Round answer to 2 decimal places, e.g. 2.55.) 20 $25 per shar
The information below pertains to Skysong Company for 2026. Net income for the year 8% convertible bonds issued at par ($1,000 per bond); each bond is convertible into 30 shares of common stock 6% convertible, cumulative preferred stock, $100 par value; each share is convertible into 3 shares of common stock Common stock, $10 par value Tax rate for 2026 Average market price of common stock Basic earnings per share $ b. Compute diluted earnings per share for 2026. (Round answer to 2 decimal places, e.g. 2.55.) $1,230,00 Diluted earnings per share $ 2,090,00 3,830,00 6,110,00 There were no changes during 2026 in the number of common shares, preferred shares, or convertible bonds outstanding. There is no treasury stock. The company also has common stock options (granted in a prior year) to purchase 80,600 shares of common stock at $20 per share. a. Compute basic earnings per share for 2026. (Round answer to 2 decimal places, e.g. 2.55.) 20 $25 per shar
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The information below pertains to Skysong Company for 2026.
Net income for the year
8% convertible bonds issued at par ($1,000 per bond); each bond is convertible into 30 shares of common stock
6% convertible, cumulative preferred stock, $100 par value; each share is convertible into 3 shares of common stock
Common stock, $10 par value
Tax rate for 2026
Average market price of common stock
Basic earnings per share $
b. Compute diluted earnings per share for 2026. (Round answer to 2 decimal places, e.g. 2.55.)
$1,230,00
Diluted earnings per share $
2,090,00
3,830,00
There were no changes during 2026 in the number of common shares, preferred shares, or convertible bonds outstanding. There is no
treasury stock. The company also has common stock options (granted in a prior year) to purchase 80,600 shares of common stock at
$20 per share.
a. Compute basic earnings per share for 2026. (Round answer to 2 decimal places, e.g. 2.55.)
6,110,00
209
$25 per shar
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