Question
DILUTED EARNING PER SHARE, CONVERTIBLE SECURITIES - ABC Corporation has weightedaverage number of common stock outstanding throughout 2015 of 400,000 shares. In addition, the corporation
DILUTED EARNING PER SHARE, CONVERTIBLE SECURITIES - ABC Corporation has weightedaverage
number of common stock outstanding throughout 2015 of 400,000 shares. In
addition, the corporation has $5,000,000 bonds, 6.3%, convertible into 100,000 common
stock. During the year 2015, the corporation has net income of $750,000. Required: Compute
the basic earnings per share and the diluted earnings per share. The tax rate is 30%.
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Managerial Accounting
Authors: James Jiambalvo
6th edition
9781119158226, 111915801X, 1119158222, 978-1119158011
