Question

Hanson Co. had 200,000 ordinary shares, 20,000 shares of convertible preference shares, and $1,000,000 of 10% convertible bonds outstanding during 2011. The preference shares are convertible into 40,000 ordinary shares. During 2011, Hanson paid dividends of $1.20 per share on the ordinary shares and $4 per share on the preference shares. Each $1,000 bond is convertible into 45 ordinary shares. The net income for 2011 was $800,000 and the income tax rate was 30%. Basic earnings per share for 2011 is (rounded to the nearest penny) a. $2.94 Ob. $3.35 O c. $3.22 Od. $3.60

          Hanson Co. had 200,000 ordinary shares, 20,000 shares of convertible preference shares, and
$1,000,000 of 10% convertible bonds outstanding during 2011. The preference shares are convertible
into 40,000 ordinary shares. During 2011, Hanson paid dividends of $1.20 per share on the ordinary
shares and $4 per share on the preference shares. Each $1,000 bond is convertible into 45 ordinary
shares. The net income for 2011 was $800,000 and the income tax rate was 30%.
Basic earnings per share for 2011 is (rounded to the nearest penny)
a. $2.94
Ob. $3.35
O c. $3.22
Od. $3.60

hanson co had 200000 ordinary shares 20000 shares of convertible preference shares and 1000000 of 10 convertible bonds outstanding during 2011 the preference shares are convertible into 4000 03025

Added by Remedios F.

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