Question
Last year, East Corporation reported basic and diluted EPS in an amount less than basic EPS due to outstanding stock options. Those options were excercised
Last year, East Corporation reported basic and diluted EPS in an amount less than basic EPS due to outstanding stock options. Those options were excercised on January 1 of the current year. During the current year, East Corporation had 3 million shares of common stock outstanding. 4,000, 6% convertible bonds, each with $1,000 face value, were issued at face amount at the beginning of the year. East reported income before tax of $6 million and net income of $3.6 million for the year. Each bond is convertible into 10 shares of common stock. What is diluted EPS?
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