DILUTED EARNING PER SHARE, CONVERTIBLE SECURITIES
*******************GREETING I HAD THIS QUESTION ANSWERED TOÂ ON 5/10/2017***************************************Â
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DILUTED EARNING PER SHARE, CONVERTIBLE SECURITIESÂ - ABC Corporation has weightedaverage
number of common stock outstanding throughout 2015 of 400,000 shares. In
addition, the corporation has $5,000,000 bonds, 6.3%, convertible into 100,000 common
stock. During the year 2015, the corporation has net income of $750,000. Required: Compute
the basic earnings per share and the diluted earnings per share. The tax rate is 30%.
ANS:
Basic EPS = $750000/400000 = $1.875
Diluted EPS = ($750000 + $5000000 x 6.3% x (1-0.30))/(400000+100000)
= $970500/500000
= $1.941
 ******************************* I'M HAVING DIFICULTIES IN HOW THE $970500 = SOLUTION ?**************************
PLEASE CAN I HAVE THISÂ PROBLEM ANSWERED EASY UNDERSTANDING. THANKS!
Answers
Status NEW
Posted 22 May 2017 06:05 AM
My Price 6.00
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Attachments
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