On May 1, 2020 ABC Company issued 1500 $2,000, 7% bonds at par. Each bond is convertible into 10 shares of common stock.
Posted: Tue Nov 16, 2021 9:35 am
On May 1, 2020 ABC Company issued 1500 $2,000, 7% bonds at par.
Each bond is convertible into 10 shares of common stock. The
company had 50,000 common shares outstanding on January 1, 2020 and
they issued an additional 10,000 shares on November 1, 2020. ABC’s
net income in 2020 was $400,000 and the tax rate was 30%. What is
diluted EPS for 2020?
a. $7.29
b. $6.64
c. $8.20
d. $7.74
Each bond is convertible into 10 shares of common stock. The
company had 50,000 common shares outstanding on January 1, 2020 and
they issued an additional 10,000 shares on November 1, 2020. ABC’s
net income in 2020 was $400,000 and the tax rate was 30%. What is
diluted EPS for 2020?
a. $7.29
b. $6.64
c. $8.20
d. $7.74