There were no changes during Year 11 in the number of common shares, preferred shares, or convertible bonds outstanding
The information below pertains to TV Johnny Company for Year 11:
Net income for the year $1,200,000
7% convertible bonds issued at par ($1,000 bond);
each bond convertible into 30 shares of common stock 2,000,000
6% convertible, cumulative preferred stock, $100 par value;
each share convertible into 3 shares of common stock 4,000,000
Common stock, $10 par value 6,000,000
Income tax rate for Year 11 20%
Average market price of common stock during Year 11 $25 per share
Market price of common stock on December 31, Year 11 $30 per share
There were no changes during Year 11 in the number of common
Instructions:
1. Compute Basic EPS for Year 11.
2. Compute Diluted EPS for Year 11.
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