Company B had net income for the fiscal year ended December 31, 2020 of $5 million. There were 500,000 common shares outstanding throughout 2020. The average market price of the common shares for the...


Company B had net income for the fiscal year ended December 31, 2020 of $5<br>million. There were 500,000 common shares outstanding throughout 2020. The<br>average market price of the common shares for the entire fiscal year was $50.<br>Company tax rate was 25% for 2020.<br>Company B had the following potential common shares outstanding during 2020:<br>• Options to buy 100,000 common shares at $45 per share.<br>• 100,000 convertible preferred shares entitled to a cumulative dividend of<br>$10 per share. Each preferred share is convertible into 1.5 common shares.<br>• 4% convertible bonds with a principal amount of $30 million, issued at par.<br>Each $1,000 bond is convertible into 25 common shares.<br>For the fiscal year ended December 31, 2020, what is the basic and diluted EPS<br>using IFRS?<br>

Extracted text: Company B had net income for the fiscal year ended December 31, 2020 of $5 million. There were 500,000 common shares outstanding throughout 2020. The average market price of the common shares for the entire fiscal year was $50. Company tax rate was 25% for 2020. Company B had the following potential common shares outstanding during 2020: • Options to buy 100,000 common shares at $45 per share. • 100,000 convertible preferred shares entitled to a cumulative dividend of $10 per share. Each preferred share is convertible into 1.5 common shares. • 4% convertible bonds with a principal amount of $30 million, issued at par. Each $1,000 bond is convertible into 25 common shares. For the fiscal year ended December 31, 2020, what is the basic and diluted EPS using IFRS?

Jun 06, 2022
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