Santiago Enterprises has the following potentially dilutive securities that it has issued prior to the current fiscal year. SANTIAGO ENTERPRISES POTENTIALLY DILUTIVE SECURITIES FOR CALCULATING DILUTED EARNINGS PER SHARE AT BEGINNING OF CURRENT FISCAL YEAR Long Term Debt: Bonds Payable, 8%, issued in denominations of $1,000 at par, each bond is convertible into 15 shares of common stock 1,000,000 Stockholders' Equity: Preferred Stock, $25 par value, 5% annual dividend rate, cumulative and nonparticipating, each share is convertible into 2.5 shares of common stock 1,000,000 Stock Options Outstanding, 100,000 options, $15 option exercise price The company's average stock price for the year is $25 and the price at the end of the fiscal year is $21. The company's average tax rate for the year is 30%. REQUIRED: Calculate the per share effects for each of these potentially dilutive securities that would be used to calculate the company's diluted earnings per share for the year. Round your answers to two decimal places.

Intermediate Accounting: Reporting And Analysis
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ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
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Santiago Enterprises has the following potentially dilutive securities that it has issued prior to the
current fiscal year.
SANTIAGO ENTERPRISES
POTENTIALLY DILUTIVE SECURITIES FOR CALCULATING DILUTED
EARNINGS PER SHARE
AT BEGINNING OF CURRENT FISCAL YEAR
Long Term Debt:
Bonds Payable, 8%, issued in denominations of $1,000 at par, each bond is
convertible into 15 shares of common stock
1,000,000
Stockholders' Equity:
Preferred Stock, $25 par value, 5% annual dividend rate, cumulative and
nonparticipating, each share is convertible into 2.5 shares of common
stock
1,000,000
Stock Options Outstanding, 100,000 options, $15 option exercise price
The company's average stock price for the year is $25 and the price at the end of the fiscal year is
$21. The company's average tax rate for the year is 30%.
REQUIRED: Calculate the per share effects for each of these potentially dilutive securities that
would be used to calculate the company's diluted earnings per share for the year.
Round your answers to two decimal places.
Transcribed Image Text:Santiago Enterprises has the following potentially dilutive securities that it has issued prior to the current fiscal year. SANTIAGO ENTERPRISES POTENTIALLY DILUTIVE SECURITIES FOR CALCULATING DILUTED EARNINGS PER SHARE AT BEGINNING OF CURRENT FISCAL YEAR Long Term Debt: Bonds Payable, 8%, issued in denominations of $1,000 at par, each bond is convertible into 15 shares of common stock 1,000,000 Stockholders' Equity: Preferred Stock, $25 par value, 5% annual dividend rate, cumulative and nonparticipating, each share is convertible into 2.5 shares of common stock 1,000,000 Stock Options Outstanding, 100,000 options, $15 option exercise price The company's average stock price for the year is $25 and the price at the end of the fiscal year is $21. The company's average tax rate for the year is 30%. REQUIRED: Calculate the per share effects for each of these potentially dilutive securities that would be used to calculate the company's diluted earnings per share for the year. Round your answers to two decimal places.
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