Calculate basic earnings per share

Reference no: EM131012760

Francis Company has 9,600 shares of common stock outstanding at the beginning of 2013. Francis issued 1,200 additional shares on May 1 and 800 additional shares on September 30. It also has two convertible securities outstanding at the end of 2013. These are:Convertible preferred stock: 1,000 shares of 9.5%, $50 par, preferred stock were issued on January 2, 2010, for $55 per share. Each share of preferred stock is convertible into 2 shares of common stock. Current dividends have been declared and paid. To date, no preferred stock has been converted.Convertible bonds: Bonds with a face value of $100,000 and an interest rate of 6.5% were issued at par in 2012. Each $1,000 bond is convertible into 25 shares of common stock. To date, no bonds have been converted.Francis earned net income of $50,000 during 2013. The income tax rate is 30%.

1. Calculate basic earnings per share for 2013, round to the nearest cent.

2. Calculate diluted earnings per share for 2013 and the incremental EPS of the preferred stock and convertible bonds. If required, round your answers to the nearest cent.

Diluted earnings per share :

Incremental earnings per share
Bonds:	$
Preferred:	$

Reference no: EM131012760

Questions Cloud

What is the daily volume of primary solids produced : Three primary clarifiers operating in parallel is the layout chosen. If the clarifiers have an efficiency of 60% for removing influent total suspended solids and if the solids underflow (TSS removed) has a concentration of 3.0% (by weight) of TSS..

Describe linear parametrized motion : P(t) = (x(t), y(t)), where x(t) = a + 3t and y(t) = b + 8t, a, b are constants and distances are measured in units of meters. The equations x(t), y(t) describe linear parametrized motion.

Which of the following would appear as a prior period adjust : Which of the following would appear as a prior period adjustment. loss resulting from the sale of fixed assets. difference between the actual and estimated uncollectible accounts receivable. error in the computation of depreciation expense in the pre..

Is it profitable to replace the year-old machine : Task 18 One year ago, your company purchased a machine used in manufacturing for $120,000. You have learned that a new machine is available that offers many advantages; The market value today of the current machine is $50,000. Your company’s tax rate..

Calculate basic earnings per share : Calculate diluted earnings per share for 2013 and the incremental EPS of the preferred stock and convertible bonds. If required, round your answers to the nearest cent.

Discuss the expert panel review procedures : Discuss the expert panel review procedures at a minimum and discuss how to find and solicit the panel to assist with research

Which are fees charged by the lender : Home loans typically involve “points,” which are fees charged by the lender. Each point charged means that the borrower must pay 1% of the loan amount as a fee. For example, if the loan is for $180,000 and 2 points are charged, the loan repayment sch..

Vision has recently deteriorated : Assume your vision has recently deteriorated. You are considering tow alternatives. The first option is to wear contact lenses. You estimate that your annual contact lens cost will be $300 paid at the end of the year. The second option is to undergo ..

The percentage change in the price of these bonds : Both Bond Bill and Bond Ted have 11 percent coupons, make semiannual payments, and are priced at par value. Bond Bill has 3 years to maturity, whereas Bond Ted has 20 years to maturity. If interest rates suddenly rise by 2 percent, what is the percen..

User Account

All Pages