What should be the diluted earnings per share

Assignment Help Accounting Basics
Reference no: EM132708613

Question - At December 31, 2020, Professor Company had 450,000 shares of ordinary shares outstanding. On September 1, 2020, an additional 150,000 shares of ordinary shares were issued. In addition, Professor had P10,000,000 of 6% convertible bonds outstanding at December 31, 2019 which are convertible into 300,000 shares of ordinary shares. The carrying value of the bonds as of December 31, 2019 and based on a rate of 8% is P9,205,800. No bonds were converted into ordinary shares in 2020. The net income for the year ended December 31, 2020 was P3,750,000.

Assuming the income tax rate was 32%, what should be the diluted earnings per share for the year ended December 31, 2020 of Professor Company?

a. P5.20

b. P5.31

c. P5.44

d. P7.50

Reference no: EM132708613

Questions Cloud

Discussing several options to address flagging revenue : The board of directors at AutoEdge is actively discussing several options to address flagging revenue. One option continues to surface during each board meeting
Determine the maximum price that they can afford to pay : The company can expect to get a 9 percent return on any investment. Determine the maximum price that they can afford to pay for the machine up front
Find what is operating cash flow each year : 13 year life of the investment to a salvage value of $0. The opportunity cost of capital is 5% and the tax rate is 36%. What is operating cash flow each year?
Would you choose to do the exam in one place : Supply and Demand and price fluctuations based on this. That may also lead to some HC services becoming commodities. Let's take an X-ray exam.
What should be the diluted earnings per share : Assuming the income tax rate was 32%, what should be the diluted earnings per share for the year ended December 31, 2020 of Professor Company
Find the maturity value of a promissory note : Find the maturity value of a promissory note for $1400.00 dated March 31, 2001, and due on August 31, 2006, if interest is 7.64% compounded quarterly.
Compute the weight of equity of the firm : Compute the Weight of Equity of the firm, Weight of Debt of the firm, Cost of Equity of the firm, After Tax Cost of Debt of the firm
What will be outcomes of policy based on your description : Provide an analysis of the policy. This should reflect your opinion of the policy: What will be the outcomes of the policy based on your description.
What is the apr on this loan : To finance the purchase, you've arranged for a 30- year mortgage loan for 80 percent of the $2,900,000 purchase price. What is the APR on this loan

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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