Answered: Ivanhoe Corporation earned net income… | bartleby

Corporate Fin Focused Approach

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter3: Analysis Of Financial Statements

Section: Chapter Questions

Problem 1STP

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Ivanhoe Corporation earned net income of $338,200 in 2023 and had 89,000 common shares outstanding throughout the year. Also
outstanding all year was $840,000 of 10% bonds that are convertible into 29,000 common shares. Ivanhoe's tax rate is 25%.
Calculate Ivanhoe's 2023 diluted earnings per share. For simplicity, ignore the IFRS requirement to record the debt and equity
components of the bonds separately. (Round answer to 2 decimal places, e.g. 15.25.)
Diluted earnings per share
in
1.24

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