Question
Bravo, Inc., owns all of the stock of Echo, Inc. For 2021, Bravo reports income (exclusive...
Bravo, Inc., owns all of the stock of Echo, Inc. For 2021,
Bravo reports income (exclusive of any investment income) of
$480,000. Bravo has 80,000 shares of common stock outstanding. It
also has 5,000 shares of preferred stock outstanding that pay a
dividend of $15,000 per year. Echo reports net income of $290,000
for the period with 80,000 shares of common stock outstanding. Echo
also has a liability from its 10,000, $100 bonds that pay annual
interest of $8 per bond. Each of these bonds can be converted into
two shares of common stock. Bravo owns none of these bonds. Assume
a tax rate of 21 percent.
What amount should Bravo report as diluted earnings per share?
(Round your intermediate percentage value to the nearest whole
number and the final answer to 2 decimal places.)
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Basic
Earnings Per Share
Choose
Numerator:
/
Choose
Denominator:
=
Basic
EPS
–
/
=
Basic
EPS
–...
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