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Nash Inc. had net income for the current year endingDecember 31, 2020 of $1,169,680. During the entire year, therewere 510,000 common shares outstanding. The company hadtwo classes of preferred shares outstanding: the Class A preferredshares were $2.48 cumulative shares ofwhich 11,000 were outstanding, and were convertible tocommon shares at a rate of 1:1. Therewere 103,000 $6.48 Class B non-cumulative preferredshares outstanding that were also convertible at a rate of1:1. Nash had outstanding a $1,000,000, 8% bondissued in 2009 that was convertible to 22,000 commonshares. The company also had outstanding a $1,000,000, 6% bondissued in 2010 that was convertible to 26,000 commonshares. No dividends were declared or paid this year. Nash’stax rate is 39%.
Calculate basic earnings per share.
Calculate the after-tax interest paid on the 2009 bonds.
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Determine an incremental per share effect for 2009bonds. (Round earnings per share to 3 decimalplaces, e.g. 15.257.)
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Calculate the after-tax interest paid on the 2010 bonds.
Determine an incremental per share effect for 2010bonds. (Round earnings per share to 3 decimalplaces, e.g. 15.257.)
Determine an incremental per share effect for Class A preferredshares. (Round earnings per share to 2 decimalplaces, e.g. 15.25.)
Determine an incremental per share effect for Class B preferredshares. (Round earnings per share to 2 decimalplaces, e.g. 15.25.)