Oriole Company had 196000 shares of common stock, 19200 shares of convertible preferred stock, and $605000 of 11% convertible bonds outstanding during 2021. The preferred stock is convertible into 40000 shares of common stock. During 2021, Oriole paid dividends of $0.54 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 2021 was $359000 and the income tax rate was 35%. Diluted earnings per share for 2021 is (rounded to the nearest penny) $1.53. $1.36. $1.60. $1.40.
Oriole Company had 196000 shares of common stock, 19200 shares of convertible preferred stock, and $605000 of 11% convertible bonds outstanding during 2021. The preferred stock is convertible into 40000 shares of common stock. During 2021, Oriole paid dividends of $0.54 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 2021 was $359000 and the income tax rate was 35%. Diluted earnings per share for 2021 is (rounded to the nearest penny) $1.53. $1.36. $1.60. $1.40.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Oriole Company had 196000 shares of common stock, 19200 shares of convertible
Diluted earnings per share for 2021 is (rounded to the nearest penny)
$1.53.
$1.36.
$1.60.
$1.40.
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