The information below pertains to Hood Company for 2026. Net income for the year $9,410,000 6% convertible bonds issued at par ($1,000 per bond); each bond is convertible into 60 shares of common stock 4,930,000 4% convertible, cumulative preferred stock, $100 par value; each share is convertible into 4 shares of common stock 2,450,000 Shares of common stock, $1 par value 9,760,000 Tax rate for 2026 20% Average market price of common stock, per share 20 There were no changes during the year in the number of common shares, preferred shares, or convertible bonds outstanding. There is no treasury stock. The company also has common stock options (granted in a prior year) to purchase 120,000 shares of common stock at $12 per share. Required - Calculate the following: Record Answers Here: 1 Preferred dividends paid $98,000 2 Basic earnings per share $1 3 Incremental shares issued for stock options 48,000 4 Incremental shares issued for convertible bonds 295,800 5 Interest savings for convertible bonds (inclusive of tax effect) $236,640.0 6 EPS effect of convertible, cumulative preferred stock (numerator/denominator impact) 7 Final diluted earnings per share
The information below pertains to Hood Company for 2026. Net income for the year $9,410,000 6% convertible bonds issued at par ($1,000 per bond); each bond is convertible into 60 shares of common stock 4,930,000 4% convertible, cumulative preferred stock, $100 par value; each share is convertible into 4 shares of common stock 2,450,000 Shares of common stock, $1 par value 9,760,000 Tax rate for 2026 20% Average market price of common stock, per share 20 There were no changes during the year in the number of common
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