Hope corp had 900,000 net income in 2018. The tax rate is 40%.220,0000 shares of common stock outstanding throughout 2018.
Hope corp had the following potentially dilutive securities.
-There are 30,000 options to buy common stock at 40 a shareoutstanding. The market price of the common stock averaged 50during 2018.
. During 2018, there were 40,000 shares of Cumulativeconvertible 7% preferred stock outstanding. The preferred is $100par, pays $3.50 a year dividend, and is convertible into threeshares of common stock.
-Hope Corp issued $1,800,000 of 8% convertible bonds at facevalue during 2017. Each $1,000 bond is convertible into 30 sharesof common stock.
Requirements:
Compute diluted earnings per share for 2018. Completethe schedule and show all computations.
Security Net Income Adjustment Adjusted Net IncomeShares Adjustment Adjusted Shares EPS
Hope corp had 900,000 net income in 2018. The tax rate is 40%.220,0000 shares of common stock outstanding throughout 2018.
Hope corp had the following potentially dilutive securities.
-There are 30,000 options to buy common stock at 40 a shareoutstanding. The market price of the common stock averaged 50during 2018.
. During 2018, there were 40,000 shares of Cumulativeconvertible 7% preferred stock outstanding. The preferred is $100par, pays $3.50 a year dividend, and is convertible into threeshares of common stock.
-Hope Corp issued $1,800,000 of 8% convertible bonds at facevalue during 2017. Each $1,000 bond is convertible into 30 sharesof common stock.
Requirements:
Compute diluted earnings per share for 2018. Completethe schedule and show all computations.
Security Net Income Adjustment Adjusted Net IncomeShares Adjustment Adjusted Shares EPS
Related questions
The information below pertains to Larkspur Company for 2018.
| Net income for the year | $1,190,000 | |
| 7% convertible bonds issued at par ($1,000 per bond); each bond is convertible into 30 shares of common stock | 1,970,000 | |
| 6% convertible, cumulative preferred stock, $100 par value; each share is convertible into 3 shares of common stock | 4,000,000 | |
| Common stock, $10 par value | 6,280,000 | |
| Tax rate for 2018 | 40% | |
| Average market price of common stock | $25 per share |
There were no changes during 2018 in the number of common shares, preferred shares, or convertible bonds outstanding. There is no treasury stock. The company also has common stock options (granted in a prior year) to purchase 68,800 shares of common stock at $20 per share.
(a) Compute basic earnings per share for 2018.
(b) Compute diluted earnings per share for 2018
For 2013, Behrend Corp. originally reported basic EPS of $2.00 and diluted EPS of $1.80. At the end of 2014, Behrend distributed a 2 for 1 stock split. In reporting the 2013, comparative amounts in the 2014 annual report, the basic and diluted EPS amounts will be respectively reported at:
| $2.00/share, $1.80/share |
| $1.00/share, $.90/share |
| $1.00/share, $1.80/share |
| $2.00/share, $.90/share |
Throughout 2014, Behrend Corporation had 900,000 shares of common stock and 50,000 shares of $6 nonconvertible preferred stock outstanding. Behrend declared and paid the annual cash dividend of $300,000 to preferred shareholders during 2014.
On January 1, 2014, Behrend issued $2,000,000 of convertible 5% bonds at face value. Each $1,000 bond is convertible into 20 common shares, but none were converted during 2014.
Behrendâs net income for the year ended December 31, 2014, was $3.9 million. The income tax rate is 40%, and Behrend reported no below-the-line items.
What is Behrendâs basic earnings per share for 2014, rounded to the nearest cent?
| $4.33 |
| $4.00 |
| $3.00 |
| None of these is correct. Throughout 2014, Behrend Corporation had 900,000 shares of common stock and 50,000 shares of $6 nonconvertible preferred stock outstanding. Behrend declared and paid the annual cash dividend of $300,000 to preferred shareholders during 2014. On January 1, 2014, Behrend issued $2,000,000 of convertible 5% bonds at face value. Each $1,000 bond is convertible into 20 common shares, but none were converted during 2014. What will Behrend report as diluted earnings per for 2014, rounded to the nearest cent?
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