Current Attempt in Progress
During Blue Inc., a furniture store, issued two different series of bonds, details of which follow:
First issue: $ bonds, at par, each convertible into common shares.
Second issue: $ bonds, at par, each convertible into common shares.
For the year ended December the company had net income of $ Throughout common shares were
outstanding; none of the bonds were converted or redeemed. The company's tax rate was
Calculate basic earnings per share. For simplicity, ignore the requirement to record the debt and equity portions of the
convertible bond separatelyRound answer to decimal places, eg
Basic earnings per share $
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Calculate the aftertax interest paid on the bond.
Incremental per share $
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Calculate an incremental per share effect for the bonds. Round EPS to decimal places, eg
Potentially dilutive security
Incremental
Numerator Effect
Incremental
Denominator Effect
EPS
