You Are Given the Following Information About VB Ltd

question 138

Essay

You are given the following information about VB Ltd.:
Class A preferred shares, 800 shares issued and outstanding; annual dividend rate of $100 per share, cumulative, paid at the end of each quarter; each share is convertible into 50 shares of Class B common
Class B common shares, 90,000 shares issued and outstanding
There are no other senior securities
Net Income for 2012, the year of the conversion, is $850,000; there are no discontinued operations.All 1,000 shares of Class A are converted into 40,000 Class B shares on October 1 2012; dividends for the first three quarters of the year were fully paid.Calculate the basic EPS.

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Definitions:

Skateboards

Wheeled boards used for recreational and sporting activities, which require balance and skill to operate.

Total Surplus

The sum of consumer surplus and producer surplus in a market, representing the total benefit to society from the production and consumption of goods or services.

Trade

Trade involves the exchange of goods and services between people or entities, either within a country or internationally, and is a fundamental aspect of the global economy.

Skateboards

Wheeled boards used for skateboarding, a recreational activity, sport, or mode of transportation.