Question
Company has 2,000,000 shares of common stock outstanding on December 31, 2018. An additional 100,000 shares are issued on April 1, 2019, and 240,000 more
Company has 2,000,000 shares of common stock outstanding on December 31, 2018. An additional 100,000 shares are issued on April 1, 2019, and 240,000 more on September1. On October 1, 2019, company issued 3,000,000 of 9% convertible bonds. Each 1,000 bond is convertible into 40 shares of common stock. No bonds have been converted. Assume the bonds are dilutive. The number of shares to be used in computing basic earnings per share and dilutive earnings per share on December 31, 2019 is?
The answer is 2,155,000 and 2,185,000 but wasn't sure how to get it
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started