Crane Corporation is preparing earnings per share data for 2023. The net income for the year ended December 31, 2023, was $396,000, and there were 58,800 common shares outstanding throughout the entire year. Crane has the following two convertible
securities outstanding:
12% convertible bonds (each $1,000 bond is convertible into 20 common shares)
4% convertible $100 par value preferred shares (each share is convertible into 3 common shares)
$50,000
Both convertible securities were issued at face value in 2024 . Crane's income tax rate is 24%. The preferred shares are cumulative.
For simplicity, ignore the requirement to record the debt and equity components of the bonds separately.
Assume that 40% of the convertible bonds were converted to common shares on April 1, 2023.
The balances at December 31, 2023 do not reflect the conversion of April 1, 2023.(c2)
Determine an incremental per share effect for 12% bonds. (Round earnings per share to 2 decimal places, e.g. 15.25.)
