Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Last year, XYZ Inc. reported net income of $ 2 2 0 , 0 0 0 and had 5 6 , 0 0 0 shares

Last year, XYZ Inc. reported net income of $220,000 and had 56,000 shares of common stock and 1,000 share of convertible preferred stock outstanding for the entire year. Each preferred share is $100 par value, pays 5% dividend, and is convertible to 25 shares of common stock. XYZ Inc. also had 200 convertible bonds oustanding for the entire year. Each convertible bond is $1000 par value, pays 3% interest and is convertible to 100 shares of common stock. The tax rate is 30%. What is the diluted earning per share?
a.1.96
b.2.02
c.2.15
d.2.22
e.2.36
f. None of these answers.
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Digital Finance Big Data Start-ups And The Future Of Financial Services

Authors: Perry Beaumont

1st Edition

0367146797, 978-0367146795

More Books

Students also viewed these Finance questions

Question

1. What physical and mental tasks does the worker accomplish?

Answered: 1 week ago

Question

5. Why is the job done?

Answered: 1 week ago

Question

4. How does the worker do the job?

Answered: 1 week ago