Question

Gator, Inc. had net income of $1,650,000 and 500,000 common shares outstanding in 2018.  The company paid...

Gator, Inc. had net income of $1,650,000 and 500,000 common shares outstanding in 2018.  The company paid $30,000 in common stock dividends during the year.  The company has 200 convertible bonds outstanding that have a coupon rate of 8% and a par value of $1,000 per bond.  Each bond can be converted into 150 common shares.  The company's tax rate is 30%.  What was the company's diluted earnings per share (EPS) in 2018?  

a.

$3.078
b.

$3.134
c.

$3.217
d.

$3.300
e.

$3.564
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer : Option b). $ 3.134

For any clarifications please comment.

Thank you.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Gator, Inc. had net income of $1,650,000 and 500,000 common shares outstanding in 2018.  The company paid...
Gator, Inc. had net income of $1,650,000 and 500,000 common shares outstanding in 2018.  The company paid $30,000 in common stock dividends during the year.  The company has 200 convertible bonds outstanding that have a coupon rate of 8% and a par value of $1,000 per bond.  Each bond can be converted into 150 common shares.  The company's tax rate is 30%.  What was the company's diluted earnings per share (EPS) in 2018?   a. $3.078 b. $3.134 c. $3.217 d. $3.300 e. $3.564
Abby Company had 150,000 shares of common stock outstanding on January 1, 2018. On September 30,...
Abby Company had 150,000 shares of common stock outstanding on January 1, 2018. On September 30, 2018, Abby sold 30,000 shares of common stock for cash. Abby also had 100, 8%, convertible bonds outstanding throughout 2018. Each $1,000 bond is convertible into 20 shares of common stock. The bonds sold originally at face value. The company also had 10,000 executive stock options outstanding that allowed executives to purchase shares of stock for $11.00. The average share price for the year...
Paul Company had 100,000 shares of common stock outstanding on January 1, 2018. On September 30,...
Paul Company had 100,000 shares of common stock outstanding on January 1, 2018. On September 30, 2018, Paul sold 45,000 shares of common stock for cash. Paul also had 8,500 shares of convertible preferred stock outstanding throughout 2018. The preferred stock is $100 par, 5%, and is convertible into 3 shares of common for each share of preferred. Paul also had 470, 7%, convertible bonds outstanding throughout 2018. Each $1,000 bond is convertible into 30 shares of common stock. The...
Smile corp had 900,000 net income in 2018. The tax rate is 40%. 220,0000 shares of...
Smile corp had 900,000 net income in 2018. The tax rate is 40%. 220,0000 shares of common stock outstanding throughout 2018. Smile corp had the following potentially dilutive securities. -There are 30,000 options to buy common stock at 40 a share outstanding. The market price of the common stock averaged 50 during 2018. . During 2018, there were 40,000 shares of Cumulative convertible 7% preferred stock outstanding. The preferred is $100 par, pays $3.50 a year dividend, and is convertible...
Monsieur Company had 80,000 shares of common stock outstanding during 2020 and 2,000 shares of cumulative...
Monsieur Company had 80,000 shares of common stock outstanding during 2020 and 2,000 shares of cumulative 6%, $100 par preferred stock, each convertible into 5 shares of common stock with  $1 par value per share. The company’s tax rate is 25%. During 2020, Monsieur Company declared and paid $5,000 in preferred dividends and no common stock dividends. Monsieur Company reported net income of $318,000 in 2020. Compute basic and diluted EPS for 2020.                Basic EPS     Diluted EPS   $3.83             $3.40    $3.91            $3.53...
Pender Corporation has 500,000 common shares issued and outstanding. It has $2,000,000 of convertible preferred outstanding....
Pender Corporation has 500,000 common shares issued and outstanding. It has $2,000,000 of convertible preferred outstanding. It can be converted to common stock at the rate of 100 shares per $1,000 of Preferred. The current share price is $19.50. Compute its fully diluted shares.
On Jan 1, 2018, Zibeon, Inc. had 8,400,000 shares of Class A common stock outstanding. On...
On Jan 1, 2018, Zibeon, Inc. had 8,400,000 shares of Class A common stock outstanding. On August 1, 2018, the company purchased 560,000 treasury shares. The board declared a 3-for-1 stock split on Oct 1, 2018. The only potentially dilutive security was $20,000,000 of 6.2% debentures, each with a face value of $1,000. The debentures had been issued in 2014 and were convertible into 20 shares of common stock. The company’s 2018 net income was $24,660,000. The tax rate was...
Paul Company had 100,000 shares of common stock outstanding on January 1, 2021. On September 30,...
Paul Company had 100,000 shares of common stock outstanding on January 1, 2021. On September 30, 2021, Paul sold 58,000 shares of common stock for cash. Paul also had 15,000 shares of convertible preferred stock outstanding throughout 2021. The preferred stock is $100 par, 7%, and is convertible into 3 shares of common for each share of preferred. Paul also had 600, 9%, convertible bonds outstanding throughout 2021. Each $1,000 bond is convertible into 30 shares of common stock. The...
Harris Pilton has 150,000 shares of common stock outstanding on January 1. On February 1, the...
Harris Pilton has 150,000 shares of common stock outstanding on January 1. On February 1, the company issued 50,000 additional shares for $50.00 each. On April 30, the company repurchased 5,000 treasury shares. On June 1, the company made a 4-for-3 bonus issue. On August 1, the company issued 1,000 new shares of common stock for $45.00 each. On September 30th, the company issued a 15% stock dividend. Harris Pilton has 2,000 shares of 5%, $10 par, noncumulative, nonconvertible preferred...
38. At December 31, 2010, Kifer Company had 500,000 shares of common stock outstanding. On October...
38. At December 31, 2010, Kifer Company had 500,000 shares of common stock outstanding. On October 1, 2011, an additional 100,000 shares of common stock were issued. In addition, Kifer had $10,000,000 of 6% convertible bonds outstanding at December 31, 2010, which are convertible into 225,000 shares of common stock. No bonds were converted into common stock in 2011. The net income for the year ended December 31, 2011, was 3,000,000. Assuming the income tax rate was 30%, the diluted...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT