Question
Gator, Inc. had net income of $1,650,000 and 500,000 common shares outstanding in 2018. The company paid $30,000 in common stock dividends during the year.
Gator, Inc. had net income of $1,650,000 and 500,000 common shares outstanding in 2018. The company paid $30,000 in common stock dividends during the year. The company has 200 convertible bonds outstanding that have a coupon rate of 8% and a par value of $1,000 per bond. Each bond can be converted into 150 common shares. The company's tax rate is 30%. What was the company's diluted earnings per share (EPS) in 2018?
| a. | $3.078 | |
| b. | $3.134 | |
| c. | $3.217 | |
| d. | $3.300 | |
| e. | $3.564 |
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College Accounting Chapters 1-30
Authors: John Price, M. David Haddock, Michael Farina
14th edition
978-1259284861, 1259284867, 77862392, 978-0077862398
