Windsor Corporation issued 20-year, $10,600,000 face value, 10% convertible debentures on January 1, 2020. The bonds have a par value of $1,000, with interest payable semiannually. The initial conversion ratio is 10:1, and in 3 years it will increase to 12:1. At the date of issue, the bonds were sold at 105. Bond premium is amortized on a straight-line basis. Windsor's effective tax rate was 40%. Net income in 2020was $25,300,000, and the company had 13,400,000 common shares issued and outstanding during the entire year. Compute both basic and diluted earnings per share. (Round answers to 2 decimal places, e.g. 2.55.) Basic earnings per share Diluted earnings per share %24 %24

Windsor Corporation issued 20-year, $10,600,000 face value, 10% convertible debentures on January 1, 2020. The bonds have a par value of $1,000, with interest payable semiannually. The initial conversion ratio is 10:1, and in 3 years it will increase to 12:1. At the date of issue, the bonds were sold at 105. Bond premium is amortized on a straight-line basis. Windsor's effective tax rate was 40%. Net income in 2020was $25,300,000, and the company had 13,400,000 common shares issued and outstanding during the entire year. Compute both basic and diluted earnings per share. (Round answers to 2 decimal places, e.g. 2.55.) Basic earnings per share Diluted earnings per share %24 %24

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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