Business, 13.08.2019 00:30 kenna0

The following information is relevant to the computation of chan co.'s earnings per share to be disclosed onchan's income statement for the year ending december 31: net income for 2002 is $600,000.$5,000,000 face value 10-year convertible bonds outstanding on january 1. the bonds were issued fouryears ago at a discount which is being amortized in the amount of $20,000 per year. the stated rate ofinterest on the bonds is 9o/o, and the bonds were issued to yield10°/o. each $1,000 bond is convertibleinto 20 shares of chan's common stock. chan's corporate income tax rate is 25°/o. chan has no preferred stock outstanding, and no other convertible securities. what amount should be usedas the numerator in the fraction used to compute chan's diluted earnings per share assuming that the bondsare dilutive securities? a. $130,000b. $247,500c. $952,500d. $1,070,000

Answers: 1

Show answers

Another question on Business

Business, 21.06.2019 19:20

Astock with a beta of 0.6 has an expected rate of return of 13%. if the market return this year turns out to be 10 percentage points below expectations, what is your best guess as to the rate of return on the stock? (do not round intermediate calculations. enter your answer as a percent rounded to 1 decimal place.)

Answers: 2

Answer

Business, 22.06.2019 09:50

For each of the following users of financial accounting information and managerial accounting information, specify whether the user would primarily use financial accounting information or managerial accounting information or both: 1. sec examiner 2. bookkeeping department 3. division controller 4. external auditor (public accounting firm) 5. loan officer at the company's bank 6. state tax agency auditor 7. board of directors 8. manager of the service department 9. wall street analyst 10. internal auditor 11. potential investors 12, current stockholders 13. reporter from the wall street journal 14. regional division managers

Answers: 1

Answer

Business, 22.06.2019 16:40

Consider two similar industries, portal crane manufacturing (pcm) and forklift manufacturing (flm). the pcm industry has exactly three incumbents with annual sales of $800 million, $200 million and $100 million, respectively. the flm industry has also exactly three incumbents, with annual sales of $500 million, $450 million and $400 million, respectively. which industry is more likely to experience a higher level of rivalry?

Answers: 3

Answer

Business, 22.06.2019 19:00

Tri fecta, a partnership, had revenues of $369,000 in its first year of operations. the partnership has not collected on $45,000 of its sales and still owes $39,500 on $155,000 of merchandise it purchased. there was no inventory on hand at the end of the year. the partnership paid $27,000 in salaries. the partners invested $48,000 in the business and $23,000 was borrowed on a five-year note. the partnership paid $2,070 in interest that was the amount owed for the year and paid $9,500 for a two-year insurance policy on the first day of business. compute net income for the first year for tri fecta.

Answers: 2

Answer

You know the right answer?

The following information is relevant to the computation of chan co.'s earnings per share to be disc...

Questions