Question
On January 1, 2018, Charlotte Co. had 100,000 of its $1 per value common stock issued and outstanding. On July 1, 2018, Charlotte initiated a
On January 1, 2018, Charlotte Co. had 100,000 of its $1 per value common stock issued and outstanding. On July 1, 2018, Charlotte initiated a 2-for-1 stock split. The company repurchased 24,000 common shares on November 1. The company declare or pay any dividends on its 36,000 outstanding shares of 5%, $10 per value, non cumulative, convertible preferred stock. Which were issued on October 1 2018. Proffered shareholders have the option to of converting three shares of preferred stock into one share of common stock. On December 1, 2018 the preferred shareholders converted all 36,000 convertible preferred stocks into 12,000 shares of common stock (i.e there was a 3-1 conversion ratio of convertible preferred stock to common stock)
For the fiscal year ended December 31st 2018 Charlotte co reported net income of 400,000. The company's tax rate is 21% (there are no per many or temporary book tax differences)
For the year ended December 31st 2018 what will the company report for diluted eps.
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