Badway Co. reported profit for the year amounting to ₱4,000,000. Badway Co. has the following equity instruments: 10,000, 10%, cumulative preference shares issued and outstanding with par value of ₱400 per share. 20,000, 5%, non-cumulative preference shares issued and outstanding with par value of ₱80 per share. 11,000 ordinary shares issued and outstanding with par value of ₱20 per share. In addition to the above instruments, Badway Co. also has outstanding convertible bonds with face amount of ₱4,000,000 and carrying amount of ₱ 3,807,853 as of the beginning of the year. The nominal rate of the bonds is 10% while the original effective interest rate is 12%. The bonds are convertible into 50,000 ordinary shares. Badway Co.’s income tax rate is 30%. Badway Co. declared the following dividends during the year: • ₱600,000 to cumulative preference shares; • ₱100,000 to non-cumulative shares; and • ₱110,000 to ordinary shares. Dividends in arrears on cumulative preference share as of the beginning of the year amounted to ₱800,000. There were no issuances or acquisitions of ordinary shares during the period. How much is the diluted earnings per share?
Badway Co. reported profit for the year amounting to ₱4,000,000. Badway Co. has the following equity instruments:
10,000, 10%, cumulative preference shares issued and outstanding with par value of ₱400 per share.
20,000, 5%, non-cumulative preference shares issued and outstanding with par value of ₱80 per share.
11,000 ordinary shares issued and outstanding with par value of ₱20 per share.
In addition to the above instruments, Badway Co. also has outstanding convertible bonds with face amount of ₱4,000,000 and carrying amount of ₱ 3,807,853 as of the beginning of the year. The nominal rate of the bonds is 10% while the original effective interest rate is 12%. The bonds are convertible into 50,000 ordinary shares. Badway Co.’s income tax rate is 30%.
Badway Co. declared the following dividends during the year:
• ₱600,000 to cumulative preference shares; • ₱100,000 to non-cumulative shares; and
• ₱110,000 to ordinary shares. Dividends in arrears on cumulative
There were no issuances or acquisitions of ordinary shares during the period. How much is the diluted earnings per share?
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