In Blossom Ltd Issued $ of bonds at par, with each $ bond being
convertible into common shares. The company had revenues of $$ and expenses of
$ for not including interest and tax. Assume a tax rate of Throughout
common shares were outstanding, and none of the bonds were converted or redeemed.
For simplicity, assume that the convertible bonds' equity element is not recorded. Please
answer the following questions:
A Income Available to Common Shareholders?
B Diluted Earnings per share? Ignore requirement to record bond debt equity separate
C Bonds issued on October rather than in and that none have been
converted or redeemed. Calculate Diluted EPS for year ended Dec. $
D Assume of the Bonds were converted July Calculate diluted EPS for the
year ended December
