Firm That Earned $20,000 (After Tax)had the Following Securities Outstanding

question 150

Multiple Choice

Firm that earned $20,000 (after tax) had the following securities outstanding all year during which the tax rate was 40%: 20,000 common shares
1,000, 6%, $100 par cumulative nonconvertible preferred shares
2,000, 4%, $50 par cumulative preferred shares, each share convertible into 5 common shares
100, 8%, $1,000 convertible bonds, each convertible into 10 common shares (bonds were issued at face)
What is basic EPS? (Rounded to the nearest cent)

• A)$0.70
• B)$0.50
• C)$1.00
• D)$0.75

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Definitions:

Written Ideas

Concepts, thoughts, or plans expressed through written language.

Lower Pay

Compensation that is considered below the average or norm for a role or industry.

Employees' Reaction

How workers respond, both emotionally and behaviorally, to changes, policies, or situations in the workplace.

Managerial Communication

The process through which managers exchange information with their teams, superiors, and other stakeholders, effectively guiding and coordinating activities.