Details of this Paper

Santana Corporation has 400,000 shares of common s...

Description

Solution


Question

Santana Corporation has 400,000 shares of common stock outstanding throughout 2010. In addition, the corporation has 5,000, 20-year, 7% bonds issued at par in 2008. Each $1,000 bond is convertible into 20 shares of common stock after 9/23/11. During the year 2010, the corporation earned $600,000 after deducting all expenses. The tax rate was 30%. Calculate 1. Earnings per share 2. Earnings per share assuming bond conversion

 

Paper#1579 | Written in 18-Jul-2015

Price : $25
SiteLock