Table B below contains data related to Cabbage Ltd.'s capitalization at January 1, 2018. Cabbage Ltd. is a public company trading on the Toronto stock exchange. TABLE B CABBAGE LTD. CAPITAL STRUCTURE...


Table B below contains data related to Cabbage Ltd.'s capitalization at January 1, 2018.<br>Cabbage Ltd. is a public company trading on the Toronto stock exchange.<br>TABLE B<br>CABBAGE LTD. CAPITAL STRUCTURE AS AT JANUARY 1, 2018<br>$30 Million, 10 year convertible debenture issued at par; interest at 6% per annum payable<br>annually 31st December. Each $1,000 debenture convertible into 120 common shares.<br>30,000,000<br>Series T Preferred, no-par value, $2.50 dividend, cumulative, non-participating;<br>600,000 shares issued and outstanding. Each share convertible into eight common shares.<br>1,200,000<br>Common, no-par value, 8,000,000 shares issued and outstanding<br>42,800,000<br>412,000 stock options, entitling option holders to purchase 2 common shares for each option<br>held at $1 per share; options exercisable beginning Jan. 1, 2022;<br>400,000<br>Retained Earnings<br>47,200,000<br>Additional Information :<br>Income Tax Rate for 2018: 40%<br>Average common share price in 2018 - $8.00.<br>A 2017 agreement with corporate executives stipulates that they will be awarded 2,000,000 common shares<br>the company's share price is trading at a minimum of $8.00 at December 31, 2020.<br>The common share price at December 31, 2018 is $9.00.<br>The following additional information is available from the company's 2018 records.<br>All convertible debentures, series T preferred shares and stock options remain outstanding in the<br>financial statements as at December 31, 2018.<br>Basic earnings per share for the year-ended December 31, 2018 has been determined at $.80 (Net<br>Profit Attributable to Ordinary Shareholders $6,720,000; Weighted Average Ordinary Shares<br>8,400,000)<br>REQUIRED:<br>Calculate Cabbage Ltd.'s diluted EPS for the year-ended December 31, 2018.<br>Provide detailed support of all calculations<br>

Extracted text: Table B below contains data related to Cabbage Ltd.'s capitalization at January 1, 2018. Cabbage Ltd. is a public company trading on the Toronto stock exchange. TABLE B CABBAGE LTD. CAPITAL STRUCTURE AS AT JANUARY 1, 2018 $30 Million, 10 year convertible debenture issued at par; interest at 6% per annum payable annually 31st December. Each $1,000 debenture convertible into 120 common shares. 30,000,000 Series T Preferred, no-par value, $2.50 dividend, cumulative, non-participating; 600,000 shares issued and outstanding. Each share convertible into eight common shares. 1,200,000 Common, no-par value, 8,000,000 shares issued and outstanding 42,800,000 412,000 stock options, entitling option holders to purchase 2 common shares for each option held at $1 per share; options exercisable beginning Jan. 1, 2022; 400,000 Retained Earnings 47,200,000 Additional Information : Income Tax Rate for 2018: 40% Average common share price in 2018 - $8.00. A 2017 agreement with corporate executives stipulates that they will be awarded 2,000,000 common shares the company's share price is trading at a minimum of $8.00 at December 31, 2020. The common share price at December 31, 2018 is $9.00. The following additional information is available from the company's 2018 records. All convertible debentures, series T preferred shares and stock options remain outstanding in the financial statements as at December 31, 2018. Basic earnings per share for the year-ended December 31, 2018 has been determined at $.80 (Net Profit Attributable to Ordinary Shareholders $6,720,000; Weighted Average Ordinary Shares 8,400,000) REQUIRED: Calculate Cabbage Ltd.'s diluted EPS for the year-ended December 31, 2018. Provide detailed support of all calculations
Jun 03, 2022
SOLUTION.PDF

Get Answer To This Question

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here