Reference no: EM133008546
Question - Wildhorse Corporation is preparing earnings per share data for 2020. The net income for the year ended December 31, 2020, was $407,000 and there were 59,200 common shares outstanding during the entire year. Wildhorse has the following two convertible securities outstanding: 10% convertible bonds (each $1,000 bond is convertible into 25 common shares) $100,0004% convertible $100 par value preferred shares (each share is convertible into 3 common shares) $47,000.
Both convertible securities were issued at face value in 2017. Wildhorse's income tax rate is 24%. The preferred shares are cumulative. For simplicity, ignore the requirement to record the debt and equity components of the bonds separately.
Assume that 40% of the convertible bonds were converted to common shares on April 1, 2020.
The balances at December 31, 2020 do not reflect the conversion of April 1, 2020.
Determine the after-tax interest paid on the 10% bonds.
|
What forms of preferential treatment
: What forms of preferential treatment can the holders of preference shares receive over and above the rights of holders of ordinary shares
|
|
What is the main objective of the derivative securities
: Why capital budgeting is important to companies when it comes to investing? What is the main objective of the derivative securities
|
|
What is the price
: You have a 30 year, 9% coupon bond with a YTM of 12%. What is the price? What is the price after 15 years have passed? What is the price
|
|
What gain or loss should ghi company recognize
: GHI Company purchased a Toyota Vios in January 2017 for P1,500,000. Based on the above transaction, what gain or loss should GHI Company recognize
|
|
Determine the after-tax interest paid on the bonds
: Both convertible securities were issued at face value in 2017. Wildhorse's income tax rate is 24%. Determine the after-tax interest paid on the bonds
|
|
Calculate diluted earnings per share for the year ended
: X Corporation issued $4 million of 10-year, 7% callable convertible subordinated debentures on January 2, 2020. Calculate diluted earnings per share for year
|
|
Find the amount to be backflushed from Raw
: Emmanuel Company has materials cost in the June 1 Raw and In Process of P10,000, Find the amount to be backflushed from Raw
|
|
What is the amount of the account investments
: What is the amount of the account investments in short-term obligations in transaction that will be carried out on June 15, 2025
|
|
Find the total market value of the bond
: Cryote issued bonds with a total face value of $100 million in July 20x9. Find the total market value of the bond, assuming that the yield demanded is 10%
|