Hanson Co. had 200,000 ordinary shares, 20,000 shares of convertible preference shares, and €1,000,000 of 10% convertible bondsoutstanding during 2022. The preference shares are convertible into 40,000 ordinary shares. During 2022, Hanson paid dividends of€1.20 per share on the ordinary shares and €4 per share on the preference shares. Each €1,000 bond is convertible into 45 ordinaryshares. The net income for 2022 was €800,000 and the income tax rate was 30%.Diluted earnings per share for 2022 is (rounded to the nearest penny)

1.Calculate the net income available to ordinary shareholders:First, we need to subtract the…

Answered: Hanson Co. had 200,000 ordinary shares,…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

ABC Co. had 200,000 ordinary shares, 20,000 convertible preference shares, and P1,000,000 of 5% convertible bonds outstanding during 2020. The preference shares are convertible into 40,000 ordinary shares. During 2020, ABC paid dividends of P.60 per share on the ordinary shares and P2 per share on the preference shares. Each P1,000 bond is convertible into 45 ordinary shares. The net income for 2020 was P400,000 and the income tax rate was 30%. What is the diluted Earnings Per Share for 2020? (rounded to the nearest penny)a. P1.39b. P1.41c. P1.53d. P1.67
ABC Co. had 200,000 ordinary shares, 20,000 convertible preference shares, and P1,000,000 of 5% convertible bonds outstanding during 2020. The preference shares are convertible into 40,000 ordinary shares. During 2020, ABC paid dividends of P.60 per share on the ordinary shares and P2 per share on the preference shares. Each P1,000 bond is convertible into 45 ordinary shares. The net income for 2020 was P400,000 and the income tax rate was 30%. Diluted EPS for 2020 is (rounded to the nearest penny) * P1.39 P1.41 P1.53 P1.67
ABC Co. had 200,000 ordinary shares, 20,000 convertible preference shares, and P1,000,000 of 5% convertible bonds outstanding during 2020. The preference shares are convertible into 40,000 ordinary shares. During 2020, ABC paid dividends of P.60 per share on the ordinary shares and P2 per share on the preference shares. Each P1,000 bond is convertible into 45 ordinary shares. The net income for 2020 was P400,000 and the income tax rate was 30%. Diluted EPS for 2020 is (rounded to the nearest penny) * P1.39 P1.41 P1.53 P1.67 answer not given
On January 1, 2022, Shamrock SA issued 10-year, €1,870,000 face value, 6% bonds, at par. Each €1,000 bond is convertible into 15 ordinary shares of Shamrock. Shamrock's net income in 2023 was €462,800, and its tax rate was 40%. Interest expense on the liability component in 2023 was €130,900. The company had 104,000 ordinary shares outstanding throughout 2022. None of the bonds were converted in 2022. (a) Compute diluted earnings per share for 2022. (Round answer to 2 decimal places, e.g. 2.55.) Diluted earnings per share € (b) Compute diluted earnings per share for 2022, assuming the same facts as above, except that €1,040,000 of 6% convertible preference shares were issued instead of the bonds. Each €100 preference share is convertible into 5 ordinary shares of Shamrock. (Round answer to 2 decimal places, eg. 2.55.) Diluted earnings per share €
The following information was obtained from the statement of financial position of NORWAY, INC. on December 31, 2017: 6% convertible 10-year bonds at par Ordinary share capital, P20 par, 110,000 shares issued and outstanding Retained earnings P2,000,000 2,200,000 950,000 Each P1,000 bond can be converted into 40 ordinary shares. On September 30, 2018, the bonds were all converted into ordinary shares. Norway reported net income of P600,000 in 2018. The income tax rate is 30%. 16. What is Norway's basic earnings per share for 2018? а. Р3.16 c. P5.07 b. Р4.62 d. P5.45 17. What is Norway's diluted earnings per share for 2018? а. Р2.83 с. Р3.16 b. Р3.63 d. P3.49
ABC Co. had 200,000 ordinary shares, 20,000 convertible preferenceshares, and P1,000,000 of 5% convertible bonds outstanding during2020. The preference shares are convertible into 40,000 ordinary shares.During 2020, ABC paid dividends of P.60 per share on the ordinary sharesand P2 per share on the preference shares. Each P1,000 bond isconvertible into 45 ordinary shares. The net income for 2020 wasP400,000 and the income tax rate was 30%. Diluted EPS for 2020 is(rounded to the nearest penny) A. P1.39B. P1.41C. P1.53D. P1.67E. answer not given
On December 31, 2021, PISTACHIO Company had outstanding ₱20 million face value convertible bonds maturing on December 31, 2024. Interest is payable annually on December 31. Each ₱1,000 bond is convertible into 60 shares of PISTACHIO’s ₱P10 par ordinary shares. The unamortized premium balance on December 31, 2021 is ₱350,000. The balance of Share premium arising from bond conversion privilege is ₱640,000. On this date, assume that on December 31, 2021, PISTACHIO retired the ₱2,000,000 issue at 103. Without the conversion privilege, these bonds would have been sold at 102. A. What is the amount credited to share premium upon conversion of the bonds? B. How much is the gain or loss on retirement taken to profit or loss?
A company had profit after tax of €50,000,000 for the year ended 31 December 2020. The number of shares in issue on 1 January 2020 was 12,000,000 and the company undertook a 2 for 1 stock split on 1st May and bought back 2,000,000 shares on 1st October financed by a debt issue. The company has 2 million preferred shares in issue each with 10 PAR value and a dividend of 8%. The company also has in issue convertible bonds with a total of 10,000,000 of PAR value with a coupon of 3% and each 100 of PAR convertible into 10 shares. The company also has issued stock options covering 600,000 shares with a strike price of €25. The share price at the end of the year was €35 and averaged €32 over the year. The company pays tax at 20%. Calculate EPS and diluted EPS for the company, assuming their accounting year is the same as the calendar year. With regards to the buyback of shares, explain how the buyback would be treated in the accounts and the reasons companies buy back shares.
PQ Co. had 200,000 ordinary shares, 20,000 shares of convertible preference shares, and $1,000,000 of 10% convertible bonds outstanding during 2021. The preference shares are convertible into 40,000 ordinary shares. During 2021, PQ paid dividends of $1.20 per share on the ordinary shares and $4 per share on the preference shares. Each $1,000 bond is convertible into 45 ordinary shares. The net income for 2021 was $800,000 and the income tax rate was 30%. Basic earnings per share for 2021 is (rounded to the nearest penny) Diluted earnings per share for 2021 is (rounded to the nearest penny)
On December 31, 2021, PISTACHIO Company had outstanding ₱20 million face value convertible bonds maturing on December 31, 2024. Interest is payable annually on December 31. Each ₱1,000 bond is convertible into 60 shares of PISTACHIO’s ₱P10 par ordinary shares. The unamortized premium balance on December 31, 2021 is ₱350,000. The balance of Share premium arising from bond conversion privilege is ₱640,000. On this date, an individual holding 2,000 of the bonds exercised the conversion privilege when the market value of PISTACHIO’s ordinary share was ₱18. What is the amount credited to share premium upon conversion of the bonds? *
During 2020, ABC Co. had net income of $900,000. The company has 20,000 shares of 5%, $100 par, convertible preferred stock outstanding, and 1,500, 10% convertible bonds outstanding, which were issued at par. The preferred shares and the convertible bonds were issued in 2017. Each share of convertible preferred stock is convertible into 5 shares of common stock. Each bond is convertible into 90 shares of common stock. The company has a tax rate of 21% and a weighted average shares outstanding of 800,000 throughout 2020. Instructions: Compute Basic EPS for 2020 Compute Diluted EPS for 2020 Please type your answers in the text-box below. Please show your work using the EPS formula equations.
Fortuner Company had 200,000 ordinary shares outstanding on January 1, 2021. On January 1, 2021, the entity issued 4,000 convertible 10% bonds with P1,000 face value. The bonds were converted on October 1, 2021 and 40 ordinary shares were issued in exchange for each bond. Net income was P5,000,000. The income tax rate is 30%. What is the amount of basic earnings per share? 25.00 13.80 20.83 15.62 What is the amount of diluted earnings per share? 14.47 21.65 14.72 14.61

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS