thomastom
Jun 12, 2006, 02:14 PM
This is the problem
XYZ has 500,000 shares of common stock outstanding throughout 2004. In addition, the corporation has 5,000, 20 year, 7% bonds issued at par in 2002. Each $1,000 bond is convertible into 25 shares of common stock after 09/23/05. During 2004, the corporation earned $600,000 after deducting all expenses. The tax rate was 30%.
Compute the proper earnings per share
Do the dates look right to you- I was wondering if the 09/23/05 was a typo.
Any ideas on this one- diluted basic earnins per share, I really don't know
XYZ has 500,000 shares of common stock outstanding throughout 2004. In addition, the corporation has 5,000, 20 year, 7% bonds issued at par in 2002. Each $1,000 bond is convertible into 25 shares of common stock after 09/23/05. During 2004, the corporation earned $600,000 after deducting all expenses. The tax rate was 30%.
Compute the proper earnings per share
Do the dates look right to you- I was wondering if the 09/23/05 was a typo.
Any ideas on this one- diluted basic earnins per share, I really don't know