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View FoneTES Current Attempt in Progress On January 1, 2025, Kingbird Company issued 10-year. $1,900,000 face value, 6% bonds, at par. Each $1,000 bond is convertible into 14 shares of Kingbird common stock. Kingbird's net income in 2025 was $509,850, and its tax rate was 20%. The company had 99,000 shares of common stock outstanding throughout 2025. None of the bonds were converted in 2025. a. Compute diluted earnings per share for 2025. (Round answer to 2 decimal places, e.g. 2.55.) Diluted earnings per share b. Compute diluted earnings per share for 2025, assuming the same facts as above, except that $990,000 of 6% convertible preferred stock was issued instead of the bonds. Each $100 preferred share is convertible into 5 shares of Kingbird common stock. (Round answer to 2 decimal places, e.g. 2.55.) Diluted earnings per share $

View FoneTES Current Attempt in Progress On January 1, 2025, Kingbird Company issued 10-year. $1,900,000 face value, 6% bonds, at par. Each $1,000 bond is convertible into 14 shares of Kingbird common stock. Kingbird's net income in 2025 was $509,850, and its tax rate was 20%. The company had 99,000 shares of common stock outstanding throughout 2025. None of the bonds were converted in 2025. a. Compute diluted earnings per share for 2025. (Round answer to 2 decimal places, e.g. 2.55.) Diluted earnings per share b. Compute diluted earnings per share for 2025, assuming the same facts as above, except that $990,000 of 6% convertible preferred stock was issued instead of the bonds. Each $100 preferred share is convertible into 5 shares of Kingbird common stock. (Round answer to 2 decimal places, e.g. 2.55.) Diluted earnings per share $

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Current Attempt in Progress On January 1, 2025, Kingbird Company issued 10-year. $1,900,000 face value, 6% bonds, at par. Each $1,000 bond is convertible into 14 shares of Kingbird common stock. Kingbird's net income in 2025 was $509,850, and its tax rate was 20%. The company had 99,000 shares of common stock outstanding throughout 2025. None of the bonds were converted in 2025. a. Compute diluted earnings per share for 2025. (Round answer to 2 decimal places, eg. 2.55.) Diluted earnings per share $ b. Compute diluted earnings per share for 2025, assuming the same facts as above, except that $990,000 of 6% convertible preferred stock was issued instead of the bonds. Each $100 preferred share is convertible into 5 shares of Kingbird common stock. (Round answer to 2 decimal places, e.g. 2.55.) Diluted earnings per share $
Transcribed Image Text:Current Attempt in Progress On January 1, 2025, Kingbird Company issued 10-year. $1,900,000 face value, 6% bonds, at par. Each $1,000 bond is convertible into 14 shares of Kingbird common stock. Kingbird's net income in 2025 was $509,850, and its tax rate was 20%. The company had 99,000 shares of common stock outstanding throughout 2025. None of the bonds were converted in 2025. a. Compute diluted earnings per share for 2025. (Round answer to 2 decimal places, eg. 2.55.) Diluted earnings per share $ b. Compute diluted earnings per share for 2025, assuming the same facts as above, except that $990,000 of 6% convertible preferred stock was issued instead of the bonds. Each $100 preferred share is convertible into 5 shares of Kingbird common stock. (Round answer to 2 decimal places, e.g. 2.55.) Diluted earnings per share $
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