Diluted earnings per share

Assignment Help Financial Management

Reference no: EM131178080

Vickrey Technology has had net income of $1,500,000 in the current fiscal year. There are 1,000,000 shares of common stock outstanding along with convertible bonds, which have a total face value of $8 million. The $8 million is represented by 5,000 different $1,000 bonds. Each $1,000 bond pays 4% interest. The conversion ratio is 30. The firm is in a 30% tax bracket. What is Vickrey's "diluted earnings per share?"

Reference no: EM131178080

Questions Cloud

What are erna capital structure weights on book value basis : Erna Corp. has 6 million shares of common stock outstanding. The current share price is $72, and the book value per share is $7. Erna Corp. also has two bond issues outstanding. What are Erna’s capital structure weights on a book value basis? What a..

What is the company pretax cost of debt : Mudvayne, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 16 years to maturity that is quoted at 106 percent of face value. The issue makes semiannual payments and has an embedded cost of 6 percent annually. ..

What is your best estimate of the companys cost of equity : Stock in Dragula Industries has a beta of 1.3. The market risk premium is 6 percent, and T-bills are currently yielding 4.30 percent. The company’s most recent dividend was $1.50 per share, and dividends are expected to grow at a 8.0 percent annual r..

What is the NAV of the fund : A mutual fund has 600 shares of General Electric, currently trading at $18, and 600 shares of Microsoft, Inc., currently trading at $35. The fund has 1,500 shares outstanding. What is the NAV of the fund? Assume that the price of General Electric sh..

Diluted earnings per share : Vickrey Technology has had net income of $1,500,000 in the current fiscal year. There are 1,000,000 shares of common stock outstanding along with convertible bonds, which have a total face value of $8 million. The $8 million is represented by 5,000 d..

What is its projected available funds gap : Time bank of New York expects new deposit inflows next month of $265 million and deposit with straws of $425 million. The banks economics department has projected that new loan demand will reach $400 million and customers with approved credit lines w..

Why mega merger often ended up in financial disaster : On Jan 10th 2000, AOL announced to acquire Time Warner for $182 billion. When the deal was announced, the combined company is worth $350 billion. Now split again, AOL is worth $3 billion while Time Warner is worth about $140 billion 15 years later. P..

What is the market price per share of stock : Say you decide to start a firm and you need $500 million of capital to begin. You sell stock for its par value, a total of one million shares (par value is $200 per share), and sell $300 million of bonds at par value. You use the capital you just rai..

Upon completion of capital investment project : Upon completion of a capital investment project, what management functions related to it remain to be done? Define and discuss the two main types of cost accounting systems for manufacturing operations. What are their similarities and differences?

User Account

All Pages