(Solution Document) Taylor Company has 20,000 shares of common stock outstanding during all of 2014.


Taylor Company has 20,000 shares of common stock outstanding during all of 2014. It also has convertible outstanding at the end of 2014. These are:

-Convertible preferred stock, 1000 share of 6% $100 par that was issued on Jan 2, 2014 for $105 per share. Each share is convertible into 6 shares of common stock. Dividends were declared on December 15, 2014. No preferred stock was converted

-Convertible bonds, with a face of $100,000 and interest rate of 8% were issued in 2013. Each 1,000 bond is convertible into 20 shares of common stock. No bonds have been converted.

Taylor had a net income of $100,000 for 2014 and their income tax rate is 30%.

Compute basic and diluted earnings per share. Do not worry about ranking order or dilutive securities

 







About this question:

Pay using PayPal (No PayPal account Required) or your credit card. All your purchases are securely protected by .
SiteLock