The net profit after tax for AB Limited for the year ended 31/12/2023 was K125 000 and the company and 1000 000 ordinary shares of K1 each. On 1/5/2023 the company issued 200 000 ordinary shares as bonus issue. The company has 10% convertible debt of K2 500 000. If the bondholders can convert to equity shares on the basis of K2 for very share.Required to computea) Basic EPS b) Diluted EPS c) Why is it important to distinguish between basic EPS and DEPS wen making investment

The net profit after tax for AB Limited for the year ended 31/12/2023 was K125 000 and the company and 1000 000 ordinary shares of K1 each. On 1/5/2023 the company issued 200 000 ordinary shares as bonus issue. The company has 10% convertible debt of K2 500 000. If the bondholders can convert to equity shares on the basis of K2 for very share.Required to computea) Basic EPS b) Diluted EPS c) Why is it important to distinguish between basic EPS and DEPS wen making investment

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

D1.
Company X has a June 30th year-end. On 1 July 20X5 company X issued £40 million 10% convertible loan stock at par. The terms of conversion (on 1 July 20X9) are that for every £200 of loan stock, 40 ordinary shares will be issued at the option of loan stockholders. The income tax is 25%. Earnings attributable to ordinary shareholders for the year ended 30th June 20X6 were £32.4m and 60 million ordinary shares in issue. You may assume that the convertible loan stock is dilutive. Calculate company X's diluted EPS for the year ended 30th June 20X6.
Hi please help me thanks
The information below pertains to Coronado Company for 2021. Net income for the year 7% 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 2021 Average market price of common stock Basic earnings per share $ $1,160,000 There were no changes during 2021 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 82,100 shares of common stock at $20 per share. (a) Compute basic earnings per share for 2021. (Round answer to 2 decimal places, e.g. $2.55.) Diluted earnings per share $ 2,010,000 4,080,000 5,800,000 20% $25 per share (b) Compute diluted earnings per share for 2021. (Round answer to 2 decimal places, e.g. $2.55.)
7. Lilac Company has 200,000 shares of ordinary shares outstanding on January 1, 2021. On March 31, 2021, 100,000 additional ordinary shares. On June 30, the company issued 10%, 100,000 convertible preference share par value of P20. The preference shares are convertible into 200,000 shares of ordinary shares. On December 31, 2021, Lilac Company reported a net income of P1,140,000 after tax and paid dividends of P300,000 to ordinary and P100,000 to preference shareholders. What is the diluted earnings per share? Group of answer choices 3.42 3.24 3.51 3.04
4.Which of the following alternatives represents the correct debt-equity ratio for year 2021?A. 50,22%B. 18,89%C. 30,15%D. 17.19%E. 19,57%
Current Attempt in Progress On January 2, 2025, Oriole Co. issued at par $1920000 of 6% convertible bonds. Each $1000 bond is convertible into 10 shares of common stock. No bonds were converted during 2025. Oriole had 204000 shares of common stock outstanding during 2025. Oriole's 2025 net income was $898000 and its income tax rate was 30% Oriole's diluted earnings per share for 2025 was O $4.79. O $4.55. O $4.40. O $4.38.
Wild Cat Corporation has a $1,000,000 debt issue that is convertible into 10,000 prdinary shares Interest expense on the liability component of this convertible bond is $60,000. Net income for the year is $210,000, the weighted average number of ordinary shares outstanding is 100,000 shares, and the tax rate is 40 percent. In this case assumed conversion of the debt into ordinary shares at the beginning of the year. Requirement. a. Calculate Basic EPS b. Calculate Diluted EPS
In 2021, a company issued 6% bonds with a maturity value of P40,000, together with 1,000 shares of its P10 par value ordinary share, for a combined cash amount of P150,000. The market value of the company's share on that date cannot be ascertained. If the bonds were issued separately, they would have been sold for P35,000 on an 8% yield to maturity basis. Determine the increase in share premium as a result of this transaction.
Company X has a June 30th year-end. On 1 July 20X5 company X issued £40 million 10%convertible loan stock at par. The terms of conversion (on 1 July 20X9) are that for every £200 ofloan stock, 40 ordinary shares will be issued at the option of loan stockholders. The income tax is25%. Earnings attributable to ordinary shareholders for the year ended 30th June 20X6 were£32.4m and 60 million ordinary shares in issue. You may assume that the convertible loan stock isdilutive.Calculate company X’s diluted EPS for the year ended 30th June 20X6
Blue Company has a complex capital structure with $1,000,000 4% convertible bonds (convertible into 10,000 shares) when the tax rate is 20%. Net income is $304,000 and the weighted average common shares outstanding are equal to 80,000. Blue will report the following earnings per share (rounded to 2 decimal places): O Basic $3.80 and Diluted $-0-. O Basic $3.80 and Diluted $3.80. O Basic $3.80 and Diluted $3.20. O Basic $3.80 and Diluted 3.73.
The owners’ equity accounts for Vase Corporation are shown here: Common stock (€3 par value) Capital surplusRetained earningsTotal owners’ equity €900,000 1,200,000 2,600,000 4,700,000 Instructions: 1. If the company’s stock currently sells for €58 per share and a 15 percent stock dividend is declared, how many new shares will be distributed? Show how the equity accounts would change. 2. Assume that instead of a stock dividend, the company declares a three-for-one stock split. How the equity accounts will change? How many shares are outstanding now? What is the new par value per share?