Blue Corporation issued 20-year, $10,100,000 face value, 9% convertible debentures on January 1, 2020. The bonds have a

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Blue Corporation Issued 20 Year 10 100 000 Face Value 9 Convertible Debentures On January 1 2020 The Bonds Have A 1 (19.83 KiB) Viewed 37 times

Blue Corporation issued 20-year, $10,100,000 face value, 9% convertible debentures on January 1, 2020. The bonds have a par value of $1,000, with interest payable semiannually. The initial conversion ratio is 10:1, and in 3 years it will increase to 12:1. At the date of issue, the bonds were sold at 105. Bond premium is amortized on a straight-line basis. Blue's effective tax rate was 40%. Net income in 2020 was $26,370,000, and the company had 11,570,000 common shares issued and outstanding during the entire year. Compute both basic and diluted earnings per share. (Round answers to 2 decimal places, eg 255.) Basic earnings per share $ Diluted earnings per share $