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E16-22B (EPS with Convertible Bonds, Various Situations) At the beginning of 2014, Florida Rock Industries had 25,000 shares of common stock issued and outstanding and 500 $1,000, 6% bonds, each convertible into 10 shares of common stock. During 2014, Flo

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E16-22B (EPS with Convertible Bonds, Various Situations) At the beginning of 2014, Florida Rock Industries had 25,000 shares of common stock issued and outstanding and 500 $1,000, 6% bonds, each convertible into 10 shares of common stock. During 2014, Florida Rock had revenues of $156,500 and expenses other than interest and taxes of $104,000. Assume that the tax rate is 40%. None of the bonds was converted or redeemed.;Instructions;(a) Compute diluted earnings per share for 2014.;(b) Assume the same facts as those assumed for part (a), except that the 500 bonds were issued on September 1, 2014 (rather than in a prior year), and none have been converted or redeemed.;(c) Assume the same facts as

 

Paper#78633 | Written in 18-Jul-2015

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