Compute both basic and diluted earnings per share

Assignment Help Financial Management
Reference no: EM132405195

Question

The Shamrock Corporation issued 10-year, $5,390,000 par, 7% callable convertible subordinated debentures on January 2, 2017. The bonds have a par value of $1,000, with interest payable annually. The current conversion ratio is 13:1, and in 2 years it will increase to 16:1. At the date of issue, the bonds were sold at 97. Bond discount is amortized on a straight-line basis. Shamrock's effective tax was 40%. Net income in 2017 was $10,350,000, and the company had 2,170,000 shares outstanding during the entire year.

Compute both basic and diluted earnings per share.

Reference no: EM132405195

Questions Cloud

Evolutionary history of the saltwater crocodile : Use reliable information sources to research "salt water crocodile", including its evolutionary history.
What account should sheffield credit in 2018 to record : Sheffield Corp. acquired 22600 shares of its own common stock at $20 per share on February 5, 2017, and sold 11300 of these shares at $27 per share.
Personal involvement in democratic process : Federalist representative democracy requires both personal responsibility-social responsibility of citizens through personal involvement in democratic process.
What is the value of the bond today and in 2 years : Assuming interest rates remain the same over this bond's lifetime, what is going to happen to the value of this bond as time goes by?
Compute both basic and diluted earnings per share : The Shamrock Corporation issued 10-year, $5,390,000 par, 7% callable convertible subordinated debentures on January 2, 2017. The bonds have a par value.
Slavery impact the development of american government : How did technology change the power of the presidency? How did slavery impact the development of American Government?
Compute the earnings per share data that should appear : Compute the earnings per share data that should appear on the financial statements of Concord Industries as of December 31, 2017.
What kind of account arises : If pension expense recognized in a period exceeds the current amount funded by the employer, what kind of account arises, and how should it be reported.
Record the journal entries required by yia company : On October 31, YIA Company had a $25,000 balance in Accounts Receivable and a $1,800 credit balance in Allowance for Uncollectible Accounts.

Reviews

Write a Review

Financial Management Questions & Answers

  Calculate the present value of the project to the firm

A firm has the opportunity to invest in a project that is expected to pay an end-of-year annual return of $2 million for each of the next fifteen years after taxes and expenses. The current cost of the project would be $6 million. Assuming a discount..

  What is the annual rate earned on the investments portfolio

What is the annual rate earned on the investments portfolio?

  Explain the duopolist dilemma

Describe/Explain the duopolist dilemma. Be able to explain the various pricing outcomes.

  At what total capital investment level

A company expects to earn $23 million in income this coming year. Its target capital structure is 30% debt, 15% preferred stock, and 55% common equity financing. The company normally pays a dividend equal to 27% of its earnings. At what total capital..

  When the loan is repaid at the end of september

Show that your effective annual borrowing rate is close to what the contract implied when the loan is repaid at the end of September.

  What is the value of the bond-market rate of interest

What is the value of the bond assuming a 14 percent market rate of interest?

  What coupon rate do you need to set

If you want to issue new 10-year coupon bonds at par, what coupon rate do you need to set?

  What is the intrinsic value of a cochlear share

BA515 - FINANCIAL MANEGEMENT ASSIGNMENT. What is the intrinsic value of a cochlear share if your required rate of return is 16% p.a? Estimate the cash flows for the project. Tabulate your answer

  Correct discount rate for cash flows from developed wells

What is the correct discount rate for cash flows from the developed wells? What do you say the NPVs of the two wells are?

  Considering the capital asset pricing model

Considering the Capital Asset Pricing Model, which of the following observations is incorrect?

  Explain the three components of cash flow for project

Identify and explain the three components of cash flow for a project. Discuss some of the most important factors that go into calculating these.

  What is the cost to manufacture one unit of each model

Assume direct labor hours are the only cost-allocation base. What is the cost to manufacture one unit of each model?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd