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Natali5045456 [20]
2 years ago
13

computing eps: convertible bonds a company has outstanding $140,000 of 8% convertible bonds due in five years. each $1,000 conve

rtible bond is convertible into 40 shares of common stock. net income for the year was $896,000. common shares outstanding for the year were 375,000. the relevant tax rate is 25%. a. compute basic earnings per share. b. compute diluted earnings per share. note: enter the earnings per share amounts in dollars and cents, rounded to the nearest penny. net income available to common stockholders weighted avg. common shares outstanding per share basic eps answer answer answer diluted eps answer answer answer
Business
1 answer:
Andreas93 [3]2 years ago
8 0

          Net income available to      Weighted avg. Common      Per Share  

              Common stockholders.       Shares outstanding

                      (a)                                            (b)                                 (a-b)

<u>Basic EPS      $896,000                           375,000                          $2.39</u>

<u>Diluted EPS   $904,400                           380, 600                         $2.38</u>

No. of Common shares to compute diluted EPS

= <u>Common shares + Convertible doods</u>

375,000 + [$140,000 x 40/$1000]

= 375,000 + 5,600

= 380,600

To calculate earnings per share, subtract preferred dividends from the company's net income. Then divide that amount by the average number of common shares outstanding. Subtract preferred dividends from a company's net income and divide the result by the sum of the weighted average number of shares outstanding and the number of diluted shares.

Learn more about The relevant tax rate here:- brainly.com/question/19522494

#SPJ4

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The correct answer is A package trust deed.

Explanation:

A trust or trust (from the Latin fideicommissum, in turn from fides, "faith", and commissus, "commission") is a contract under which one or more persons (trustor / trustee / s) transfer assets, amounts of money or rights, present or future, of your property to another person (fiduciary, who may be a natural or legal person) to administer or invest the property for their own benefit or for the benefit of a third party, called beneficiary, and transmit your property, upon compliance with a term or condition, to the trustee, which may be the trustee, the beneficiary or another person.

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4 0
4 years ago
What are the most important differences between perfectly competitive markets and Unlike in perfectly competitive markets, in mo
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Answer:

The correct answer is option C, firms face downward-sloping demand curves, and the products competitors sell are differentiated

Explanation:

In monopolistically competitive market all companies sell distinguished products. In this market all companies face downward sloping demand curve. These are the expectations of monopolistically competitive market. Therefore, option C is correct.

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3 years ago
if the federal reserve decided to include virtual money like bitcoins in its measure of the money supply, what would be the effe
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If the Fed decided that virtual money should be included in money supply, we would see a situation where both <u>M1 </u><u>and </u><u>M2 increase/ rise. </u>

M1 is:

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  • Inclusive of cash and close instruments

If virtual money was counted as money, it would increase M1 because virtual money is very liquid as it can easily be converted to cash so it would be counted as M1.

M2 would increase because M1 is part of M2.

In conclusion, both M1 and M2 would increase.

<em>Find out more about M1 and M2 at brainly.com/question/25458814.</em>

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Answer:

$2,583

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By using financial calculator, we obtain:

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