Question
In 2019, Splish Enterprises issued, at par, 60 $1,000, 9% bonds, each convertible into 100 shares...
In 2019, Splish Enterprises issued, at par, 60 $1,000, 9% bonds,
each convertible into 100 shares of common stock. Splish had
revenues of $15,600 and expenses other than interest and taxes of
$8,500 for 2020. (Assume that the tax rate is 20%.) Throughout
2020, 1,700 shares of common stock were outstanding; none of the
bonds was converted or redeemed.
(a) Compute diluted earnings per share for 2020.
(Round answer to 2 decimal places, e.g.
$2.55.)
| Earnings per share |
$ |
(b) Assume the same facts as those assumed for
part (a), except that the 60 bonds were issued on September 1, 2020
(rather than in 2019), and none have been converted or redeemed.
Compute diluted earnings per share for 2020. (Round
answer to 2 decimal places, e.g. $2.55.)
| Earnings per share |
$ |
(c) Assume the same facts as assumed for part (a),
except that 20 of the 60 bonds were actually converted on July 1,
2020. Compute diluted earnings per share for 2020.
(Round answer to 2 decimal places, e.g.
$2.55.)
| Earnings per share |
$ |
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