Howard Corporation earned $480,000 during a period when it had an average of 100,000 common shares outstanding.
Question:
common shares outstanding. The common shares sold at an average market price of $23 per share during the period. Also outstanding were 18,000 warrants that could each be exercised to purchase one common share for $10.
Instructions
(a) Are the warrants dilutive?
(b) Calculate basic earnings per share.
(c) Calculate diluted earnings per share. Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Step by Step Answer:
a The warrants are dilutive because the option price 10 is less than the average market price ...View the full answer
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