User Account

All Pages

Question - EPS with Convertible Bonds

Assignment Help Accounting Basics
Reference no: EM132494030

Question - EPS with Convertible Bonds

On June 1, 2012, Bluhm Company and Amanar Company merged to form Davenport Inc. A total of 800,000 shares were issued to complete the merger. The corporation reports on a calendar year basis.

On April 1, 2014, the company issued an additional 600,000 shares of stock for cash. All 1,400,000 shares were outstanding on December 31, 2014.

Davenport Inc. also issued $600,000 of 20-year, 8% convertible bonds at par on July 1, 2014. Each $1,000 bond converts to 40 shares of common at any interest date. None of the bonds have been converted to date.

Davenport Inc is preparing its annual report for the fiscal year ending December 31, 2014, and will report earnings per share figures based upon a reported after-tax net income of $1,540,000. The tax rate is 40%.

Required - Determine the following for 2014.

(a) The number of shares to be used for calculating:

(1) Basic earnings per share.

(2) Diluted earnings per share.

(b) The earnings figures to be used for calculating:

(1) Basic earnings per share.

Reference no: EM132494030

Questions Cloud

Comparing categories and distributions of quantities values : The chart you select to represent your data will be influenced by many factors. Kirk (2016) has put each chart into the five main families below:
Prepare the adjusting entry at december to record bond : Prepare the adjusting entry at December 31, 2018, to record bond interest expense accrued since September 30, 2018. (Assume that no monthly adjusting entries)
Design and analysis of algorithm : Subject: Design and Analysis of Algorithm 1: Give short and logical explanation of the following questions.
Describe three of key elements of an internal control system : Why would a merchandising company need good internal controls related to its inventory? Define and describe three of key elements of an internal control system
Question - EPS with Convertible Bonds : Question - EPS with Convertible Bonds. On June 1, 2012, Bluhm Company and Amanar Company merged to form Davenport Inc
Show journal entries to record the transactions : Prepare journal entries to record the above transactions assuming Grand Lantern University is a public university or Grand Lantern University is a private
Pro-con gastric bypass surgery : Topic - Pro-Con Gastric Bypass Surgery - complete the final draft of your Pro-Con Position Paper - Review the template provided and consider the feedback
What amount of the proceeds should be allocated : Mouser Company issues 4,000 shares of its $5 par value common stock, What amount of the proceeds should be allocated to the preferred stock
How much of the proceeds would be allocated to common stock : Bleeker Company issued 10,000 shares of its $5 par value common stock, How much of the proceeds would be allocated to the common stock

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.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd