Reference no: EM132616795
Information concerning the capital structure of Piper Corporation is as follows:
2018 2017
Ordinary Share 150,000 shares 150,000 shares
Convertible Preference shares 15,000 shares 15,000 shares
9% Convertible bonds $2,400,000 $2,400,000
During 2017, Piper paid dividends of $1.20 per ordinary share and $3.00 per preference share. The preference shares are convertible into 30,000 ordinary shares. The 9% convertible bonds are convertible into 75,000 ordinary shares. The net income for the year ended December 31, 2017, was $600,000. Assume that the income tax rate was 30%.
Problem 1: What should be the basic earnings per share for the year ended December 31, 2017, rounded to the nearest $?