The information below pertains to Prancer Company for 2008.Net income for the year…

The information below pertains to Prancer Company for 2008.Net income for the year ……………………$1,200,0008% convertible bonds issued at par ($1,000 per bond). Each bond is convertible into40 shares of common stock. …………………..2,000,0006% convertible, cumulative preferred stock, $100 par value. Each share is convertibleinto 3 shares of common stock. …………………..3,000,000Common stock, $10 par value ………………….6,000,000Common stock options (granted in a prior year) to purchase 50,000 shares of commonstock at $20 per share ………………………..500,000Tax rate for 2008 …………………………..40%Average market price of common stock ……………..$25 per shareThere were no changes during 2008 in the number of common shares, preferred shares, or convertible bonds outstanding. There is no treasury stock.Instructions(a) Compute basic earnings per share for 2008.(b) Compute diluted earnings per share for 2008.View Solution:
The information below pertains to Prancer Company for 2008 Net

"Is this question part of your assignment? We can help"

ORDER NOW

0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *