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10. Costco had $4,000,000 of net income for 2017, with a weighted-average number of common shares outstanding of 100,000. Costco has two convertible bonds: 1)
10. Costco had $4,000,000 of net income for 2017, with a weighted-average number of common shares outstanding of 100,000. Costco has two convertible bonds: 1) 1/1/17 a 4% bond sold at 100 of $1,000,000 face value convertible into 20,000 shares and 2) 6/1/17 a 10% bond issued at 100 of $1,000,000 face value convertible into 30,000. Costco has a tax rate of 30%. What are the Basic EPS and Diluted EPS?
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