Refer to Practice 1810. Assume that the convertible bonds were issued on October 1. Compute diluted earnings

Question:

Refer to Practice 18–10. Assume that the convertible bonds were issued on October 1. Compute diluted earnings per share, assuming that

(1) Each bond was convertible into 100 shares of common stock and

(2) Each bond was convertible into 15 shares of common stock.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...