Crane Co. had 190000 shares of common stock, 20700 shares of convertible preferred stock, and $1540000 of 4% convertible bonds outstanding during 2025. The preferred stock is convertible into 40400 shares of common stock. During 2025, Crane paid dividends of $1.00 per share on the common stock and $3 per share on the preferred stock. Each $1000 bond is convertible into 30 shares of common stock. Crane's net income for 2025 was $605000 and its income tax rate was 35%. Diluted earnings per share for 2025 was O $2.33. O $2.19. O $2.15. O $2.63.

Crane Co. had 190000 shares of common stock, 20700 shares of convertible preferred stock, and $1540000 of 4% convertible bonds outstanding during 2025. The preferred stock is convertible into 40400 shares of common stock. During 2025, Crane paid dividends of $1.00 per share on the common stock and $3 per share on the preferred stock. Each $1000 bond is convertible into 30 shares of common stock. Crane's net income for 2025 was $605000 and its income tax rate was 35%. Diluted earnings per share for 2025 was O $2.33. O $2.19. O $2.15. O $2.63.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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ABC Inc. has 3,600,000 ordinary shares outstanding on December 31, 2019. An additional 800,000 ordinary shares were issued on April 1, 2020, and 400,000 ordinary shares more on July 1, 2020. On October 1, 2020, ABC Inc. issued 20,000, P1,000 face value, 8% convertible bonds. Each bond is convertible into 20 ordinary shares. No bonds were converted into ordinary shares in 2020. What is the number of shares to be used in computing basic EPS and diluted EPS, respectively? * a.) 4,400,000 and 4,400,000 b.) 4,400,000 and 4,500,000 c.) 4,400,000 and 4,800,000 d.) 4,800,000 and 5,600,000 e.) answer not given
Company B had net income for the fiscal year ended December 31, 2020 of $5 million. There were 500,000 common shares outstanding throughout 2020. The average market price of the common shares for the entire fiscal year was $50. Company tax rate was 25% for 2020. Company B had the following potential common shares outstanding during 2020: • Options to buy 100,000 common shares at $45 per share. • 100,000 convertible preferred shares entitled to a cumulative dividend of $10 per share. Each preferred share is convertible into 1.5 common shares. • 4% convertible bonds with a principal amount of $30 million, issued at par. Each $1,000 bond is convertible into 25 common shares. For the fiscal year ended December 31, 2020, what is the basic and diluted EPS using IFRS?
Raymond James had 100,000 shares of common stock outstanding on January 1, 2021. On September 30, 2021, Raymond James sold 40,000 shares of common stock for cash. Raymond James also had 6,000 shares of convertible preferred stock outstanding throughout 2021. The preferred stock is $100 par, 6%, and is convertible into 3 shares of common for each share of preferred. Raymond James also had 420, 8%, convertible bonds outstanding throughout 2021. Each $1,000 bond is convertible into 30 shares of common stock. The bonds sold originally at face value. Reported net income for 2021 was $270,000 with a 40% tax rate. Common shareholders received $1.20 per share dividends after preferred dividends were paid in 2021. Required:Compute basic and diluted earnings per share for 2021. (Round your answers to 2 decimal places.)
Marutzky Corporation had a net income of $2,200,000 for the year 2018. On January 1, 2018, the corporation had 300,000 shares of common stock outstanding and issued an additional 250,000 shares of common stock on October 1, 2018. Calculate the earnings per shares using the weighted-average number of common shares outstanding.
On January 1, 2025, Nash Company issued 10-year, $1,810,000 face value, 6% bonds, at par. Each $1,000 bond is convertible into 15 shares of Nash common stock. Nash's net income in 2025 was $403,200, and its tax rate was 20%. The company had 96,000 shares of common stock outstanding throughout 2025. None of the bonds were converted in 2025. a. Compute diluted earnings per share for 2025. (Round answer to 2 decimal places, e.g. 2.55.) Diluted earnings per share $ b. Compute diluted earnings per share for 2025, assuming the same facts as above, except that $960,000 of 6% convertible preferred stock was issued instead of the bonds. Each $100 preferred share is convertible into 5 shares of Nash common stock. (Round answer to 2 decimal places, e.g. 2.55.) Diluted earnings per share
Throughout the calendar year 2020, Kali Corporation has 400,000 common shares outstanding (no preferred shares issued). In addition, Collie has 5,000, 20-year, 7% bonds outstanding, issued at par in 2018. Each $1,000 bond is convertible into 20 common shares after June 30, 2021. Collie reported net income of $ 600,000 for calendar 2020. Their income tax rate is 30%. Required: Calculate basic and diluted earnings per share for 2020. Solution: Please explain the solution Basic earnings per share: = $ 1.50 Incremental effect of conversion of bonds = $2.45 The conversion of the bonds would be antidilutive. No diluted EPS calculation is required. The basic and diluted earnings per share of $1
On January 1, 2022, NYC Co. had 1,191,000 shares of its $12 par value common stock outstanding. On March 1, NYC Co. sold an additional 2,382,000 shares for $48 per share. The company issued a 15% stock dividend on May 1. On August 1, NYC Co. repurchased 715,000 shares of its stock. On November 1, 1,072,500 shares were sold for $50 per share. What is the weighted- average number of shares outstanding for 2022? (NIE) 4,129,067 3,175,733 3,533,233 3,771,567
BMS Ltd. had 2,200,000 average shares outstanding during all of 2017. During 2017, BMS also had 50,000 options outstanding with exercise prices of $17 each. The average stock price of BMS during 2017 was $21. This company also had 1,000 shares of preferred stock outstanding (10%. $100 par value) for the entire year, which are each convertible into 20 shares of common stock. If net income of the company was 500,000, what is the diluted earnings per share for 2017? A. $0.224 B. $0.220 C. $0.226 D. $0.225
7. At December 31, 2024, DEF Corporation had outstanding 200,000 shares of common stock. Also outstanding were 80,000 shares of preferred stock convertible into 64,000 common shares and $2,000,000 of 10% bonds convertible into 30,000 common shares. DEF's net income for the year ended December 31, 2024, is $1,140,000. The income tax rate is 25%. DEF paid dividends of $3 per share on its preferred stack during 2024. Required: Compute basic and diluted earnings per share for the year ended December 31, 2024, considering possible antidilutive effects.
The Fontenelle Co. had 200,000 shares of common stock, 20,000 shares of convertible preferred stock, and $600,000 of 10% convertible bonds outstanding during 2018. The preferred stock is convertible into 40,000 shares of common stock. During 2018, Fontenelle paid dividends of $.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 2018 was $360,000 and the income tax rate was 30%. 1. Diluted earnings per share for 2018 is (rounded to the nearest penny)?