Wildhorse Inc. had net income for the fiscal year ended June 30, 2023, of $6,300,000. There were 500,000 common shares outstanding throughout 2023. The average market price of the common shares for the entire fiscal year was $80. Wildhorse's tax rate was 25% for 2023. Wildhorse had the following potential common shares outstanding during 2023: 1. 2. 3. (a1) Options to buy 200,000 common shares at $40 per share. 200,000 convertible preferred shares entitled to a cumulative dividend of $10 per share. Each preferred share is convertible into 1.5 common shares. 5% convertible bonds with a principal amount of $31,300,000, issued at par. Each $1,000 bond is convertible into 25 common shares. Calculate the income effect of the dividends on preferred shares. Dividends on preferred shares (a2) eTextbook and Media Calculate basic earnings per share for 2023. (Round answer to 2 decimal places, e.g. 15.25.) Basic earnings per share eTextbook and Media Attempts: 1 of 3 used

Wildhorse Inc. had net income for the fiscal year ended June 30, 2023, of $6,300,000. There were 500,000 common shares outstanding throughout 2023. The average market price of the common shares for the entire fiscal year was $80. Wildhorse's tax rate was 25% for 2023. Wildhorse had the following potential common shares outstanding during 2023: 1. 2. 3. (a1) Options to buy 200,000 common shares at $40 per share. 200,000 convertible preferred shares entitled to a cumulative dividend of $10 per share. Each preferred share is convertible into 1.5 common shares. 5% convertible bonds with a principal amount of $31,300,000, issued at par. Each $1,000 bond is convertible into 25 common shares. Calculate the income effect of the dividends on preferred shares. Dividends on preferred shares (a2) eTextbook and Media Calculate basic earnings per share for 2023. (Round answer to 2 decimal places, e.g. 15.25.) Basic earnings per share eTextbook and Media Attempts: 1 of 3 used

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 23P

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Monona Company reported net income of 29,975 for 2019. During all of 2019, Monona had 1,000 shares of 10%, 100 par, nonconvertible preferred stock outstanding, on which the years dividends had been paid. At the beginning of 2019, the company had 7,000 shares of common stock outstanding. On April 2, 2019, the company issued another 2,000 shares of common stock so that 9,000 common shares were outstanding at the end of 2019. Common dividends of 17,000 had been paid during 2019. At the end of 2019, the market price per share of common stock was 17.50. Required: 1. Compute Mononas basic earnings per share for 2019. 2. Compute the price/earnings ratio for 2019.
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