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Homework answers / question archive / Larkspur Horizon Corp had the following items, all of which were outstanding throughout the entire fiscal year ending September 30, 2021:   ?740,000 common shares?280,000 $3 cumulative, no-par value preferred shares?Options to purchase 110,000 common shares at $13 per share

Larkspur Horizon Corp had the following items, all of which were outstanding throughout the entire fiscal year ending September 30, 2021:   ?740,000 common shares?280,000 $3 cumulative, no-par value preferred shares?Options to purchase 110,000 common shares at $13 per share

Accounting

Larkspur Horizon Corp had the following items, all of which were outstanding throughout the entire fiscal year ending September 30, 2021:

 

?740,000 common shares?280,000 $3 cumulative, no-par value preferred shares?Options to purchase 110,000 common shares at $13 per share. The average market price of Larkspur's common shares during the year was $20 per share. None of the options were exercised or expired during fiscal 2021?9% bond with a face value of $2,000,000, convertible to 49,000 common shares.

 

Larkspur's net income for fiscal 2021 was $8,314,000, and its tax rate was 15%. Preferred dividends had been paid in all previous fiscal years.

 

Calculate the income effect of the dividends on preferred shares.

 

A.) Dividends on preferred shares $

B.) 2.Calculate Splish's basic earnings per share for the year. Calculate Splish's basic earnings per share for the year. (For simplicity, ignore the requirement to record the debt and equity portions of the convertible bond separately). (Round answer to 2 decimal places, e.g. 15.25.)

C.) Calculate the after-tax interest paid on the 9% bonds

D.) 4.Determine an incremental per share effect for 9% bonds. (Round earnings per share to 3 decimal places, e.g. 15.257.)

E.) Calculate the proceeds from assumed exercise of options.

 

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