Determine an incremental per share effect

Assignment Help Accounting Basics

Reference no: EM132972664

Z Corporation had net income of $54,100 for the year ended December 31, 2020, and a weighted average number of common shares outstanding of 14,000. The following information is provided regarding the capital structure:

1. 5% convertible debt, 220 bonds each convertible into 42 common shares. The bonds were outstanding for the entire year. The income tax rate is 45%. The bonds were issued at par ($1,000 per bond). No bonds were converted during the year.

2. 4% convertible, cumulative $100 preferred shares, 1,000 shares issued and outstanding. Each preferred share is convertible into 3 common shares. The preferred shares were issued at par and were outstanding the entire year. No shares were converted during the year.

Determine an incremental per share effect for 4% preferred shares. (Round earnings per share to 2 decimal places, e.g. 15.25.)

Reference no: EM132972664

Questions Cloud

What role countervailing power play in power relationship : What role countervailing power play in the power relationship? Give an example of one of your own encounters with countervailing power at the school or work?

How is sovereignty defined in the contemporary world : How is sovereignty defined in the contemporary world?

How do help sustain zara value proposition : What are some of the unique key elements of Zara's business model and market strategy? How do they help sustain Zara's value proposition?

Unionized environment in a health care facility : What do you see as the pros and cons of a unionized environment in a health care facility? How can the right to collective bargaining by employees and the manda

Determine an incremental per share effect : Determine an incremental per share effect for 4% preferred shares. (Round earnings per share to 2 decimal places, e.g. 15.25.)

Explain what information management accounting department : Explain What information could the management accounting department supply to assist management with this decision? The top management of a fast-food hamburger

What information will need from accounting to assist : Provide a budget for the next quarter production for overhead cost. What information will you need from accounting to assist in building this report?

Discuss the supply chain issues in relation to oil industry : Discuss the supply chain issues in relation to the oil industry. The coronavirus pandemic has shocked the oil industry, flooding companies.

Evaluate the risk management process : Evaluate the risk management process in WHS area of Williams bicycle retail shop. evaluation process mist include

User Account

All Pages