Rudyard Corporation had 250,000 shares of common stock and 25,000 shares of 8%, $100 par convertible preferred stock outstanding during the year. Net income for the year was $700,000 and dividends were paid to both common and preferred shareholders. Rudyard's effective tax rate is 25%. Each share of preferred stock is convertible into four shares of common stock. What is Rudyard's diluted EPS (rounded)?
Rudyard Corporation had 250,000 shares of common stock and 25,000 shares of 8%, $100 par convertible preferred stock outstanding during the year. Net income for the year was $700,000 and dividends were paid to both common and preferred shareholders. Rudyard's effective tax rate is 25%. Each share of preferred stock is convertible into four shares of common stock. What is Rudyard's diluted EPS (rounded)?
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter13: Earnings Per Share (eps)
Section: Chapter Questions
Problem 1R: Ponce Towers, Inc., had 50,000 shares of common stock and 10,000 shares of 100 par value, 8%...
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Rudyard Corporation had 250,000 shares of common stock and 25,000 shares of 8%, $100 par convertible preferred stock outstanding during the year. Net income for the year was $700,000 and dividends were paid to both common and preferred shareholders. Rudyard's effective tax rate is 25%.
Each share of preferred stock is convertible into four shares of common stock. What is Rudyard's diluted EPS (rounded)?
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