1. Determine the Basic and Diluted Earnings Per Share for Company X.

All necessary Information is listed below.Show your calculations.

2. In 100 words, or fewer, explain why investors should be more interested in the the Diluted EPS number than the Basic EPS number.

Company X information for Diluted Shares calculations for period 201X: Earnings for Year 201X - $20 million Average Basic shares outstanding forCompany Xin201X- 10 million Average Stock Price foryear 201X- $6.00 Warrants to purchase common shares: - Warrants A to purchase 2 million shares ex @ $2.00 - Warrants B to purchase 3 million shares ex @ $5.00.

Assume the A and B Warrants are the only additional securities outstanding (besides the basic shares) for Company X in 201X.

Hint: CarefullyReviewPowerPointlecture slides 7 - 12, Text pages 245 -246, and thePodcast. Also, there is nothing wrong with looking up other Diluted EPS definitionsonline.

Please complete your answers on a Word document (with your name on it) and upload it here.Do not submit a PDFor Excel document.

If you use Excel to complete the calculations, you can copy and paste that portion of the spreadsheet into your Word document. You may be interested in using the attached worksheet to help you complete the calculations.

If you don't know how to do that, here are the instructions:

Select and copy the calculations in Excel.Then Paste Special (Microsoft Excel Worksheet Object) on the Word Document.That way, I can simply double click on the Word Document and see your work.

You can also view the followingYouTubeinstructional video (https://www.youtube.com/watch?v=FmjsEyWE0eI).There are several videos that will also be listed to show different methods.

You may want to use the worksheet below to help you with the calculations