Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. rawlings manufacturing reported net income of $345

Rawlings Manufacturing reported net income of $345,000 for the year-ended December 31, 20x1. The company...

50.1K

Verified Solution

Question

Accounting

Rawlings Manufacturing reported net income of $345,000 for the year-ended December 31, 20x1. The company had 16,000 shares of outstanding convertible preferred stock with a par value of $10 per share and a stated dividend rate of 7%. Dividends were paid in 20X1 at the stated rate. Each share of preferred stock can be converted into two shares of common stock. Rawlings also had $300,000 of convertible bonds outstanding that were sold at par and paid a stated rate of interest of 6%. Each $1,000 bond can be converted into 18 shares of common stock. Rawlings had 18,000 stock options outstanding tha had an exercise price of $50 per option. The average price of Rawings common stock during 20X1 was $61. The closing price of the company's stock on the last day of trading in 20X1 was $57 per share. Rawlings had 151,700 shares of common stock issued and outstanding during 20X1 and a tax rate of 42%.
requied
Calculate basic and diluted earnings-per-share. Enter the amounts to be reported as Basic EPS and Diluted EPS here in Canvas. Provide your supporting calculations on your uploaded scratch paper.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students