What is Jordan basic EPS and diluted EPS

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Reference no: EM132791213

Question - Jeff Corporation owns 90% of the common stock of Subsidiary Jordan.

The following data is available:

Jeff Jordan

Net income for 2014 $250,000 $150,000

Preferred dividends for 2014 $20,000

Common dividends for 2014 $25,000

Number of common shares outstanding 200,000 20,000 10% Preferred Stock, $100 par $200,000.

The preferred stock is cumulative and convertible. The annual preferred dividends are $20,000.

Required -

1. Jordan's preferred stock is convertible into 20,000 shares of Jordan's common stock. Jeff and Jordan do not have any other potentially dilutive securities outstanding.

a. What is Jordan's basic EPS and diluted EPS?

b. What is consolidated basic EPS and diluted EPS?

2. Jordan's preferred stock is convertible into 20,000 shares of Jeff's common stock. Jeff and Jordan do not have any other potentially dilutive securities outstanding. What is consolidated basic EPS and diluted EPS?

Reference no: EM132791213

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