Intermediate Accounting II

Q7: Throughout the year, Molten Corp. had 60,000 average common shares outstanding, and its net income for the year was $900,000. In addition it had unexercised stock warrants allowing the purchase of 10,000 shares at $80 per share. Assume the market price per share was (a) $81 per share, (b) $78 per share.

a) Diluted EPS = b) Diluted EPS =

Q7: Throughout the year, Molten Corp. had 60,000 average common shares outstanding, and its net income for the year was $900,000. In addition it had unexercised stock warrants allowing the purchase of 10,000 shares at $80 per share. Assume the market price per share was (a) $81 per share, (b) $78 per share. a) Diluted EPS b) Diluted EPS