Information concerning the capital structure of Piper Corporation is as follows: December 31, ...
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Accounting
Information concerning the capital structure of Piper Corporation is as follows:
December 31,
2016 2015
Ordinary Shares 150,000 shares 150,000 shares
Convertible preference shares 15,000 shares 15,000 shares
9% convertible bonds $2,400,000 $2,400,000
During 2016, Piper paid dividends of $1.20 per ordinary share and $3.00 per preference share. The preference shares are convertible into 30,000 ordinary shares. The 9% convertible bonds are convertible into 75,000 ordinary shares. The net income for the year ended December 31, 2016, was $600,000. Assume that the income tax rate was 30%.
What should be the basic earnings per share for the year ended December 31, 2016?
| A $2.66 | ||
| B $2.92 | ||
| C $3.70 | ||
| D $4.00 |
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