The value of basic and diluted earnings per share of the company. Giveninformation: Common shares outstanding are 400,000. Additional shares issued on September 1 are 150,000 shares. 3% non cumulative preferred stock at the beginning of year is $1,150,000. Value of bonds outstanding on June 30 is $10,000,000. Outstanding shares of convertible options are 325,000 shares on June 30. Effective tax rate is 40%. Net income is $3,500,000.

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Answer 1

Question

Chapter 20, Problem 20.5E

To determine

The value of basic and diluted earnings per share of the company.

Giveninformation:

Common shares outstanding are 400,000.

Additional shares issued on September 1 are 150,000 shares.

3% non cumulative preferred stock at the beginning of year is $1,150,000.

Value of bonds outstanding on June 30 is $10,000,000.

Outstanding shares of convertible options are 325,000 shares on June 30.

Effective tax rate is 40%.

Net income is $3,500,000.

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Answer 2

Question

Chapter 20, Problem 20.5E

To determine

The value of basic and diluted earnings per share of the company.

Giveninformation:

Common shares outstanding are 400,000.

Additional shares issued on September 1 are 150,000 shares.

3% non cumulative preferred stock at the beginning of year is $1,150,000.

Value of bonds outstanding on June 30 is $10,000,000.

Outstanding shares of convertible options are 325,000 shares on June 30.

Effective tax rate is 40%.

Net income is $3,500,000.

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Answer 3

Question

Chapter 20, Problem 20.5E

To determine

The value of basic and diluted earnings per share of the company.

Giveninformation:

Common shares outstanding are 400,000.

Additional shares issued on September 1 are 150,000 shares.

3% non cumulative preferred stock at the beginning of year is $1,150,000.

Value of bonds outstanding on June 30 is $10,000,000.

Outstanding shares of convertible options are 325,000 shares on June 30.

Effective tax rate is 40%.

Net income is $3,500,000.

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Answer 4

Question

Chapter 20, Problem 20.5E

To determine

The value of basic and diluted earnings per share of the company.

Giveninformation:

Common shares outstanding are 400,000.

Additional shares issued on September 1 are 150,000 shares.

3% non cumulative preferred stock at the beginning of year is $1,150,000.

Value of bonds outstanding on June 30 is $10,000,000.

Outstanding shares of convertible options are 325,000 shares on June 30.

Effective tax rate is 40%.

Net income is $3,500,000.

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Answer 5

Chapter 20, Problem 20.5E

To determine

The value of basic and diluted earnings per share of the company.

Giveninformation:

Common shares outstanding are 400,000.

Additional shares issued on September 1 are 150,000 shares.

3% non cumulative preferred stock at the beginning of year is $1,150,000.

Value of bonds outstanding on June 30 is $10,000,000.

Outstanding shares of convertible options are 325,000 shares on June 30.

Effective tax rate is 40%.

Net income is $3,500,000.

Answer 6

Chapter 20, Problem 20.5E

To determine

The value of basic and diluted earnings per share of the company.

Giveninformation:

Common shares outstanding are 400,000.

Additional shares issued on September 1 are 150,000 shares.

3% non cumulative preferred stock at the beginning of year is $1,150,000.

Value of bonds outstanding on June 30 is $10,000,000.

Outstanding shares of convertible options are 325,000 shares on June 30.

Effective tax rate is 40%.

Net income is $3,500,000.

Answer 7

Chapter 20, Problem 20.5E

To determine

The value of basic and diluted earnings per share of the company.

Giveninformation:

Common shares outstanding are 400,000.

Additional shares issued on September 1 are 150,000 shares.

3% non cumulative preferred stock at the beginning of year is $1,150,000.

Value of bonds outstanding on June 30 is $10,000,000.

Outstanding shares of convertible options are 325,000 shares on June 30.

Effective tax rate is 40%.

Net income is $3,500,000.

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 20 - Prob. 20.1Q Ch. 20 - Prob. 20.2Q Ch. 20 - If-Converted Method. Does the if-converted...Ch. 20 - Diluted EPS. If all potentially dilutive...Ch. 20 - Diluted EPS. Can diluted earnings per share on...Ch. 20 - Diluted EPS, Convertible Debt, and Preferred...Ch. 20 - Prob. 20.7Q Ch. 20 - Prob. 20.8Q Ch. 20 - Prob. 20.9Q Ch. 20 - EPS Disclosures. is an entity required to present...

Solution Summary: The author explains the value of basic and diluted earnings per share of the company.

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