If convert 500000 of each preferred stock and bonds Net Income Less Preferred

If convert 500000 of each preferred stock and bonds

This preview shows page 36 - 39 out of 39 pages.

If convert $500,000 of each preferred stock and bonds Net Income Less: Preferred Dividends Add back interest on bonds, net of income tax Earnings Available to Common Shareholders Additional Common Shares Common Shares Outstanding after Conversions EPS if 50% of preferred stock and 50% of bonds convert Peyton plans to raise $1,000,000 million of additional capital for the com that it will enable them to earn an additional $600,000 after tax. What w earnings per share if the raise the $1,000,000 by: a) issuing 10,000 share of 10% $100 par value convertible pre
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can be coverted into 10 shares of Peyton common stock? b) issuing $1,000,000 of 8% convertible bond, each $1,000 bo 5 shares of Peyton common stock? c) $500,000 of each of the above? Net Income Less: Preferred Dividends Earnings Available to Common Shareholders Common Shares Outstanding Basic EPS a If all preferred shares are converted: Net Income Additional Common Shares Common Shares Outstanding after conversion EPS if preferred shares converted Preferred shares are antidilutive b If all bonds are converted: Net Income Less: Preferred Dividends Add back interest on bonds, net of income tax Earnings Available to Common Shareholders Additional Common Shares Common Shares Outstanding after conversion Common Shares Outstanding after conversion c If convert $500,000 of each preferred stock and bonds Net Income Less: Preferred Dividends Add back interest on bonds, net of income tax Earnings Available to Common Shareholders Additional Common Shares Common Shares Outstanding after Conversions EPS if 50% of preferred stock and 50% of bonds convert
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$ 12,505,417.87 $ (50,000.00) $ 12,455,417.87 $ 1,750,000.00 7.11738164 $ 12,505,417.87 $ 100,000.00 $ 1,850,000.00 6.759685334 $ 12,505,417.87 $ (50,000.00) $ 56,000.00 $ 12,511,417.87 $ 5,000.00 $ 1,755,000.00 7.12901303 $ 12,505,417.87 $ (25,000.00) $ 28,000.00 $ 12,508,417.87 $ 52,500.00 $ 1,802,500.00 6.9394828669 ming year. They anticipate would be the impact on eferred stock, where share HOME
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ond can be converted into? $ 12,505,417.87 $ 50,000.00 $ 12,455,417.87 $ 1,750,000.00 7.12 $ 12,505,417.87 $ 100,000.00 $ 1,850,000.00 6.7597 $ 12,505,417.87 $ (50,000.00) $ 56,000.00 $ 12,511,417.87 $ 5,000.00 $ 1,755,000.00 7.1290130299 12,505,417.87 $ (25,000.00) $ 28,000.00 $ 12,508,417.87 $ 52,500.00 $ 1,802,500.00 6.9394828669
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