A20-29 EPS, Cascade (LO 20-2, 20-3, 20-4) Ashante Sports Collections Ltd. (ASCL) ended 20X5 with 860,000 common shares outstanding, after Issuing 250,000 common shares or cash on 31 December. The tax rate is 30%. There were no other common share transactions during the period. Net earnings were $1,380,000. The following elements are part of ASCL's capital structure: ASCL had $5,800,000 (par value) of 4% bonds payable outstanding during the year. The bonds are convertible Into 60 common shares for each $1,000 bond. Bond Interest expense was $411,000 for the year. D. ASCL had 48,000 options outstanding throughout 20X5 to purchase 205,000 common shares for $11 per share. The average share price during the year was $23. The options were not exercisable until 20X10. CASCL had 78,000, $2.05 preferred shares outstanding. The shares were cumulative. No dividends were declared in 20X6. The shares were convertible Into 58,000 common shares. ASCL had a contingent share agreement outstanding to Issue 58,000 common shares to the prior shareholders of a company that ASCL had acquired in 20X2. The shares become issuable if the acquired company's operations accumulate $5,800,000 of post- acquisition earnings before the end of 20X8. Earnings have been $3,580,000, to date, and the target is expected to be met in 20X7 e. ASCL had $8,800,000 (par value) of 3% bonds payable, Issued on 31 March 20X5. The bonds are convertible Into 50 common shares for each $1,000 bond. Bond Interest expense was $289,750 for the 9 months of the year that the bond was outstanding. Required: Compute basic and diluted EPS for 20X5. (Do not round Intermediate calculations. Round your answers to 2 decimal places.) 20X5 Basic EPS Diluted EPS
A20-29 EPS, Cascade (LO 20-2, 20-3, 20-4) Ashante Sports Collections Ltd. (ASCL) ended 20X5 with 860,000 common shares outstanding, after Issuing 250,000 common shares or cash on 31 December. The tax rate is 30%. There were no other common share transactions during the period. Net earnings were $1,380,000. The following elements are part of ASCL's capital structure: ASCL had $5,800,000 (par value) of 4% bonds payable outstanding during the year. The bonds are convertible Into 60 common shares for each $1,000 bond. Bond Interest expense was $411,000 for the year. D. ASCL had 48,000 options outstanding throughout 20X5 to purchase 205,000 common shares for $11 per share. The average share price during the year was $23. The options were not exercisable until 20X10. CASCL had 78,000, $2.05 preferred shares outstanding. The shares were cumulative. No dividends were declared in 20X6. The shares were convertible Into 58,000 common shares. ASCL had a contingent share agreement outstanding to Issue 58,000 common shares to the prior shareholders of a company that ASCL had acquired in 20X2. The shares become issuable if the acquired company's operations accumulate $5,800,000 of post- acquisition earnings before the end of 20X8. Earnings have been $3,580,000, to date, and the target is expected to be met in 20X7 e. ASCL had $8,800,000 (par value) of 3% bonds payable, Issued on 31 March 20X5. The bonds are convertible Into 50 common shares for each $1,000 bond. Bond Interest expense was $289,750 for the 9 months of the year that the bond was outstanding. Required: Compute basic and diluted EPS for 20X5. (Do not round Intermediate calculations. Round your answers to 2 decimal places.) 20X5 Basic EPS Diluted EPS
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:A20-29 EPS, Cascade (LO 20-2, 20-3, 20-4)
Ashante Sports Collections Ltd. (ASCL) ended 20X5 with 860,000 common shares outstanding, after Issuing 250,000 common shares
for cash on 31 December. The tax rate is 30%. There were no other common share transactions during the period. Net earnings were
$1,380,000. The following elements are part of ASCL's capital structure:
a. ASCL had $5,800,000 (par value) of 4% bonds payable outstanding during the year. The bonds are convertible into 60 common
shares for each $1,000 bond. Bond Interest expense was $411,000 for the year.
b. ASCL had 48,000 options outstanding throughout 20X5 to purchase 205,000 common shares for $11 per share. The average share
price during the year was $23. The options were not exercisable until 20X10.
c. ASCL had 78,000, $2.05 preferred shares outstanding. The shares were cumulative. No dividends were declared in 20X6. The
shares were convertible Into 58,000 common shares.
d. ASCL had a contingent share agreement outstanding to Issue 58,000 common shares to the prior shareholders of a company that
ASCL had acquired in 20X2. The shares become issuable if the acquired company's operations accumulate $5,800,000 of post-
acquisition earnings before the end of 20X8. Earnings have been $3,580,000, to date, and the target is expected to be met in
20X7
e. ASCL had $8,800,000 (par value) of 3% bonds payable, Issued on 31 March 20X5 The bonds are convertible Into 50 common
shares for each $1,000 bond. Bond Interest expense was $289,750 for the 9 months of the year that the bond was outstanding.
Required:
Compute basic and diluted EPS for 20X5 (Do not round Intermediate calculations. Round your answers to 2 decimal places.)
Basic EPS
Diluted EPS
20X5
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