Reference no: EM132838633
Question - Carla Vista Corporation had net income of $53,400 for the year ended December 31, 2020, and a weighted average number of common shares outstanding of 13,300. The following information is provided regarding the capital structure:
1. 8% convertible debt, 210 bonds each convertible into 43 common shares. The bonds were outstanding for the entire year. The income tax rate is 35%. The bonds were issued at par ($1,000 per bond). No bonds were converted during the year.
2. 3% convertible, cumulative $120 preferred shares, 1,200 shares issued and outstanding. Each preferred share is convertible into 2 common shares. The preferred shares were issued at par and were outstanding the entire year. No shares were converted during the year.
Required -
Calculate the income effect of the dividends on preferred shares.
Calculate the basic earnings per share for 2020.
Calculate the after-tax interest paid on the 8% bonds.
Determine an incremental per share effect for 8% bonds.
Determine an incremental per share effect for 3% preferred shares.
Rank the potentially dilutive securities from most dilutive to least dilutive.
Calculate the diluted earnings per share for 2020, using the if-converted method. For simplicity, ignore the requirement to record the debt and equity components of the bonds separately.
When Carla Vista Corporation issued the 8% convertible debt, would the company's interest rate on straight debt have been higher or lower than 8%?
When Carla Vista Corporation issued the 8% convertible debt, the company's interest rate on straight debt have been.
|
Ethics-politics and diversity
: "Ethics, Politics, and Diversity"- As an employee in your organization, why do you think the aforementioned three things are important to YOUR success?
|
|
Prepare journal entries for may open customers
: Prepare journal entries for May, open customers and creditors cards, post to the general ledger for Accounts Receivable and Accounts Payable.
|
|
Describe the steps you would take to solve the problem
: Regardless of your field of study, you will encounter ethical issues along the way that will require difficult choices. The best way to problem solve is to use.
|
|
What will the interest tax deduction be
: What will the interest tax deduction be for 2016? On January 1, 2016, your sister's pet supplies business obtained a 30-year amortized mortgage loan
|
|
Calculate the diluted earnings per share
: Calculate the diluted earnings per share for 2020, using the if-converted method. For simplicity, ignore the requirement to record the debt and equity component
|
|
Prepare journal entries using the area of interest method
: Prepare journal entries using the area of interest method for 2018, 2019, and 2020. Calculations should be rounded to the nearest dollar.
|
|
Compare structural equation modeling techniques
: Compare Structural Equation Modeling (SEM) techniques providing advantages of using SEM to other conventional methods outlining some of the various statistical
|
|
Discuss sources for the data
: Discuss sources for the data and how you would go about collecting the sample data.
|
|
What was the two-week interest rate on the initial loan
: What was the 2-week interest rate on the initial loan? Manhattan who got into a borrowing trap with a payday-lender when she got behind
|