Keyser Stamping began the current year with 480,000 common shares outstanding and issued an additional...
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Keyser Stamping began the current year with 480,000 common shares outstanding and issued an additional 210,000 shares on September 1 . The firm has $11,000,000,1.5% convertible bonds on June 30 (i.e., $165,000 coupon interest annually), which are convertible into 329,000 shares of common stock. The firm issued the bonds at par and did not convert any during the current year. It also had $1,220,000 par value, 3% nonconvertible, noncumulative preferred stock outstanding for the full year and declared dividends for the current year. The company is subject to a 30% tax rate and net income is $3,900,000. Requirement Based on this information, compute basic and diluted earnings per share for the current year. Calculate the basic earnings per share (EPS) for the current year. (Round the EPS to the nearest cent, $X.XX.) Basic EPS for the current year =
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