Darren corp has the following details for one of its subsidiaries: Long-term debt: 9% payable for notes = $1,018,000 convertible bonds payable at 7% -5,048,000 Bonds payable at 9% -6,026,000 Total long-term debt-$12,092,000 Shareholders' equity: Preferred stock, 6% cumulative, $57 par value, 106,300 shares authorized, 26,575 shares issued and outstanding-$1,514,775 Common stock, $1 par, 10,075,000 shares authorized, 1,007,500 shares issued and outstanding 1,007,500 Additional paid-in capital=4,001,800 Retained earnings=6,018,900 Total shareholders' equity-$12,542,975 Options were granted on July 1, 2013, to purchase 203,700 shares at $18 per share. Although no options were exercised during fiscal year 2014, the average price per common share during fiscal year 2014 was $20 per share.

Darren corp has the following details for one of its subsidiaries: Long-term debt: 9% payable for notes = $1,018,000 convertible bonds payable at 7% -5,048,000 Bonds payable at 9% -6,026,000 Total long-term debt-$12,092,000 Shareholders' equity: Preferred stock, 6% cumulative, $57 par value, 106,300 shares authorized, 26,575 shares issued and outstanding-$1,514,775 Common stock, $1 par, 10,075,000 shares authorized, 1,007,500 shares issued and outstanding 1,007,500 Additional paid-in capital=4,001,800 Retained earnings=6,018,900 Total shareholders' equity-$12,542,975 Options were granted on July 1, 2013, to purchase 203,700 shares at $18 per share. Although no options were exercised during fiscal year 2014, the average price per common share during fiscal year 2014 was $20 per share.

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter12: Capital Structure

Section: Chapter Questions

Problem 3PROB

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Silva Company is authorized to issue 5,000,000 shares of $2 par value common stock. In its IPO, the company has the following transaction: Mar. 1, issued 500,000 shares of stock at $15.75 per share for cash to investors. Journalize this transaction.
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At year-end, Lazy Company had 10,000 ordinary shares and 20,000 convertible preferenceshares outstanding in addition to 10%, convertible bonds payable in the face amount ofP2,000,000.During the current year, the entity paid dividends of P5 per share on the preference share.The preference share is convertible into 40,000 ordinary shares. The 9% bonds areconvertible into 30,000 ordinary shares.The net income for the current year was P2,410,000 and the income tax rate is 30%.Required:A. Compute the basic earnings per shareB. Compute the diluted earnings per share
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