| Long-term debt |
|
|
| Notes payable, 10% |
|
$1,089,000 |
| 8% convertible bonds payable |
|
5,185,000 |
| 10% bonds payable |
|
6,178,000 |
| Total long-term debt |
|
$12,452,000 |
|
|
|
| Shareholders' equity |
|
|
Preferred stock, 6% cumulative, $58 par value,
107,600 shares authorized, 26,900 shares issued and outstanding
|
|
$1,560,200 |
Common stock, $1 par, 10,118,000 shares authorized,
1,011,800 shares issued and outstanding
|
|
1,011,800 |
| Additional paid-in capital |
|
4,016,600 |
| Retained earnings |
|
6,014,200 |
| Total shareholders' equity |
|
$12,602,800 |
The following transactions have also occurred at Fitzgerald.
| 1. |
|
Options were granted on July 1, 2011, to purchase 204,600 shares at $17 per share. Although no options were exercised during fiscal year 2012, the average price per common share during fiscal year 2012 was $25 per share. |
| 2. |
|
Each bond was issued at face value. The 8% convertible bonds will convert into common stock at 58 shares per $1,000 bond. The bonds are exercisable after 5 years and were issued in fiscal year 2011. |
| 3. |
|
The preferred stock was issued in 2011. |
| 4. |
|
There are no preferred dividends in arrears; however, preferred dividends were not declared in fiscal year 2012. |
| 5. |
|
The 1,011,800 shares of common stock were outstanding for the entire 2012 fiscal year. |
| 6. |
|
Net income for fiscal year 2012 was $1,542,000, and the average income tax rate is 45%. |
For the fiscal year ended June 30, 2012, calculate the following for Fitzgerald Pharmaceutical Industries. (Round the answers to 2 decimal places, e.g. $2.45.)
(a) Basic earnings per share.
(b) Diluted earnings per share.
| Diluted earnings per share |
|
$ |