What was common stock conversion rate for preferred share

Reference no: EM131791974

Question: Kadri Corporation reported basic EPS of $3.00 and diluted EPS of $2.40 for 2014. Its EPS calculations follow:

Kadri issued the convertible preferred stock at the beginning of 2014 and the Series A and Series B convertible debt at par in late 2013. No stock options were granted or exercised in 2014.

Required: 1. The convertible preferred stock has a $100 par value per share. How many preferred shares were issued, and what was the common stock conversion rate for each preferred share?

2. The Series B convertible debt pays interest at 10% annually, and Kadri's marginal income tax rate is 40%. How much Series B debt was outstanding, and what is the common stock conversion rate for each $1,000 face Series B bond?

3. What are the interest rate and common stock conversion rate for the $5 million par of Series A debt?

4. During the year, 50,000 shares were under option, and the average exercise price was $20 per share. What was the average market price of the company's common stock during 2014?

5. Explain why Series A debt carries a lower interest rate than Series B debt although both were issued at par on the same day in 2013.

Reference no: EM131791974

Questions Cloud

Explain the relationship in automation and transportation : Explain the relationship between automation and transportation when associated with domain human factors.

Compute hanigan manufacturing basic earnings per share : Hanigan Manufacturing had 1,800,000 shares of common stock outstanding as of January 1, 2014, and 900,000 shares of 10% noncumulative (nonconvertible).

Prepare a reconciliation of net income to net cash flows : The accounting records of EZ Company provided the data below. Prepare a reconciliation of net income to net cash flows from operating activities

Calculate direct materials price variances : Why might Schuyler calculate direct materials price variances and direct materials efficiency variances with reference

What was common stock conversion rate for preferred share : The convertible preferred stock has a $100 par value per share. How many preferred shares were issued, and what was the common stock conversion rate.

One of the contingencies of influence is discretion : The difference between power and influence lies in the premise that. One of the contingencies of influence is "discretion"

Discuss measures that may be used to assess the quality : Discuss measures that may be used to assess the quality of a firms reported earnings. Obtain an annual report for a large corporation and perform a quality.

Research and analyze a case involving ethical issues : Using the internet, research and analyze a case involving ethical issues surrounding corporate governance from a global position.

Role in someone getting involved in a cult : In what ways do you believe that the need for belonging can play a role in someone getting involved in a cult?

User Account

All Pages