macandpatg
Mar 16, 2008, 04:26 AM
Computation of Basis and Diluted EPS- Need to compute basic and diluted earings per share in 2007
Net income for year $1,200,000
8% convertible bonds issued at par (1,000 per bond). Each bond is convertible into 40 shares of common stock $2,000,000
6% convertible, cumulative preferred stock, $100 par value. Each share is convertible into 3 shared of common stock $3,000,000
Common stock, $10 par value $6,000,000.00
Common stock options (granted in a prior year) to purchase 50,000 shares of common stock at $20 per share $500,000
Tax rate for 2004 40%
Average market price of common stock $25 per share
There is not changes during 2007 in the number of common shares, preferred shares or convertible bonds outstanding. There is no treasury stock.
Net income for year $1,200,000
8% convertible bonds issued at par (1,000 per bond). Each bond is convertible into 40 shares of common stock $2,000,000
6% convertible, cumulative preferred stock, $100 par value. Each share is convertible into 3 shared of common stock $3,000,000
Common stock, $10 par value $6,000,000.00
Common stock options (granted in a prior year) to purchase 50,000 shares of common stock at $20 per share $500,000
Tax rate for 2004 40%
Average market price of common stock $25 per share
There is not changes during 2007 in the number of common shares, preferred shares or convertible bonds outstanding. There is no treasury stock.