(a)Compute basic earnings per share for 2010.
(b)Compute diluted earnings per share for 2010.
NET INCOME FOR THE YEAR 1,200,000 8% convertible bonds issued at par($1000 per bond) each bond is convertible to 30 shares of common stock 2,000,000 6%convertible, cumulative preferred stock, $100 par value. Each bond is convertible into 3 shares of common stock 4,000,000 Common stock, $10 par value Tax rate for 2010 XXXXXXXXXX% Average market price of common stock $25 per share There were no changes during 2010 in the number of common shares, preferred share, or convertible bonds outstanding. There is no treasury stock. The company also has common stock options (granted in prior year) to purchase 75,000 shares of common stock at $20 per share. Compute basic earnings per share for 2010. Compute diluted earnings per share for 2010. 60,000 shares of common stock converted. 120,000 shares of common stock converted from preferred stock. 600,000 Common stock
Already registered? Login
Not Account? Sign up
Enter your email address to reset your password
Back to Login? Click here