Camiguin Company reported the following information at year-end: Ordinary share capital Convertible noncumulative preference share capital 10% convertible bonds payable 110,000 shares 20,000 shares P2,000,000 Share options to purchase 60,000 shares at P15 were outstanding. Market price of share was P25 at yer-end and averaged P20 during the year. The entity paid the annual dividend of P5 on the preference share. The preference shares are convertible into 40,000 ordinary shares. The 10% bonds are convertible into 30,000 ordinary shares. The net income for the current year was P650,000. The income tax rate is 30%. Required: 1. Basic earnings per share 2. Diluted earnings per share
Camiguin Company reported the following information at year-end: Ordinary share capital Convertible noncumulative preference share capital 10% convertible bonds payable 110,000 shares 20,000 shares P2,000,000 Share options to purchase 60,000 shares at P15 were outstanding. Market price of share was P25 at yer-end and averaged P20 during the year. The entity paid the annual dividend of P5 on the preference share. The preference shares are convertible into 40,000 ordinary shares. The 10% bonds are convertible into 30,000 ordinary shares. The net income for the current year was P650,000. The income tax rate is 30%. Required: 1. Basic earnings per share 2. Diluted earnings per share
Chapter14: Security Structures And Determining Enterprise Values
Section: Chapter Questions
Problem 2EP
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,