Question
On June 1, 2020, Beige Corporation issued at par $ 10,000 7% bonds convertible into 800 of their common shares. No bonds were converted during
On June 1, 2020, Beige Corporation issued at par $ 10,000 7% bonds convertible into 800 of their common shares. No bonds were converted during their fiscal year ended May 31, 2021.Throughout their fiscal year ended May 31, 2021, Beige had 1,200 common shares outstanding (no preferred shares issued). Beige's 2021 net income was $ 6,000, and their income tax rate is 40%.No potentially dilutive securities other than the convertible bonds were outstanding during the year. Beige's diluted earnings per share for their fiscal year ended May 31, 2021 would be:
1.$ 3.30.
2.$ 3.00.
3.$ 3.21.
4.$ 6.42.
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