Lerner Co. had 200000 shares of common stock, 20000 shares of convertible preferred stock, and $600000 of 10% convertible bonds
outstanding during 2021. The preferred stock is convertible into 40000 shares of common stock. During 2021, Lerner paid dividends of $0.55 per share on the common stock and $1.80 per share on the preferred stock. Each $1,000 bond is convertible into 45 shares of common stock. The net income for 2021 was $360000 and the income tax rate was 30%. Basic earnings per share for 2021 is (rounded to the nearest penny)
Basic earnings per share=(Net income-preferred dividends)/weighted average number of shares
net income is $360,000
preferred dividends=$1.80*20,000=$36000
Weighted average number of common stock is 200,000
Basic Earnings Per Share=($360,000-$36000)/200,000
=$1.62
From the computation the basic EPS year 2021 is $1.62
This implies that each share had earnings of $1.62 during year from which $0.55 was paid out as dividends and the balance $1.07 was reinvested in the business for further growth
Is a type of a manufacturing process where the products are designed and are finished to meets the needs, and requirement of the customer.
And are highly customized in nature in order to meet the specif needs of the order. And has a substantial quantity of design and needs the engineering analysis.
