For the year ended 31 December 2014, MFE Inc. reported net income of $3 million. The company declared and paid $200,000

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answerhappygod
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For the year ended 31 December 2014, MFE Inc. reported net income of $3 million. The company declared and paid $200,000

Post by answerhappygod »

For the year ended 31 December 2014, MFE Inc. reported net
income of $3 million. The company declared and paid $200,000 of
dividends on preferred stock. The company had a weighted average of
600,000 common shares outstanding from the beginning of the year.
The average market price of the company’s stock for the year was
$50. The company also had 50,000 warrants outstanding with an
exercise price of $30 per share.
If the market price of the company at year end was $60 per
share, the company’s diluted EPS is closest to:

A. 4.20
B. 4.52
C. 4.60
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