caldwell company has 20 000 shares of common stock outstanding d 245889

Caldwell Company has 20,000 shares of common stock outstanding during all of 2007. It also has two convertible securities outstanding at the end of 2007. These are:

1. Convertible preferred stock: 2,000 shares of 9.5%, $50 par, preferred stock were issued on January 2, 2007 for $60 per share. Each share of preferred stock is convertible into 3 shares of common stock. Current dividends have been declared. To date, no preferred stock has been converted.

2. Convertible bonds: Bonds with a face value of $200,000 and an interest rate of 5.7% were issued at par in 2006. Each $1,000 bond is convertible into 22 shares of common stock. To date, no bonds have been converted.

The company earned net income of $61,500 during 2007. Its income tax rate is 30%.

Required

Compute the 2007 diluted earnings per share. What earnings per share amount(s) would Caldwell report on its 2007 income statement?

Related Articles

armstrong helmet company 239138

Armstrong Helmet Company manufactures a unique model of bicycle helmet Question Case project Learning Objectives: Prepare practical applications of course concepts Develop analytical and critical thinking Develop decision-making capabilities Enhance professional...

read more
GET A FREE QUOTE





  
Open chat
Need help? We are Online 24/7
Hello 👋
Can we help you?