Question
On May 1, 2020 ABC Company issued 1500 $2,000, 7% bonds at par. Each bond is convertible into 10 shares of common stock. The company
On May 1, 2020 ABC Company issued 1500 $2,000, 7% bonds at par. Each bond is convertible into 10 shares of common stock. The company had 50,000 common shares outstanding on January 1, 2020 and they issued an additional 10,000 shares on November 1, 2020. ABCs net income in 2020 was $400,000 and the tax rate was 30%. What is diluted EPS for 2020?
a. $7.29
b. $6.64
c. $8.20
d. $7.74
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Survey of Accounting
Authors: Carl S Warren
5th Edition
9780538489737, 538749091, 538489731, 978-0538749091
