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Please show incremental EPS to prove if a security is dilutive as that is mostly what I am stuck on. Thanks and I will rate!
Please show incremental EPS to prove if a security is dilutive as that is mostly what I am stuck on.
Thanks and I will rate!
Use the following to compute Nen's diluted earnings per share: Nen Co had 300,000 shares of common stock outstanding. Nen had $500,000 in $1,000 bonds convertible into 30 shares of common stock each bond. The bonds have a 5% interest rate Nen had 10,000 options to purchase stock at $20 and the average market price of stock was $25. Nen's income tax rate is 50%. Net Income for the year was $600,000Step by Step Solution
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