Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Primus, Inc., owns all outstanding stock of Sonston, Inc. For the current year, Primus reports net income (exclusive of any investment income) of $632,000. Primus

image text in transcribedimage text in transcribed

Primus, Inc., owns all outstanding stock of Sonston, Inc. For the current year, Primus reports net income (exclusive of any investment income) of $632,000. Primus has 100,000 shares of common stock outstanding. Sonston reports net income of $232,000 for the period with 50,000 shares of common stock outstanding. Sonston also has 10,000 stock warrants outstanding that allow the holder to acquire shares at $13.50 per share. The value of this stock was $27 per share throughout the year. Primus owns 4,900 of these warrants What amount should Primus report for diluted earnings per share? (Round your intermediate percentage value to the nearest whole number and the final aswer to 2 decimal places.) Answer is complete but not entirely correct. Diluted earnings perS 6.33 share Primus, Inc., owns all outstanding stock of Sonston, Inc. For the current year, Primus reports net income (exclusive of any investment income) of $632,000. Primus has 100,000 shares of common stock outstanding. Sonston reports net income of $232,000 for the period with 50,000 shares of common stock outstanding. Sonston also has 10,000 stock warrants outstanding that allow the holder to acquire shares at $13.50 per share. The value of this stock was $27 per share throughout the year. Primus owns 4,900 of these warrants. What amount should Primus report for diluted earnings per share? (Round your intermediate percentage value to the nearest whole number and the final answer to 2 decimal places.) Answer is complete but not entirely correct. uted earnings per s5.67 re

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

Information Technology Control And Audit

Authors: Angel R. Otero

5th Edition

1498752284, 9781498752282

More Books

Students also viewed these Accounting questions

Question

What are HR ethics?

Answered: 1 week ago

Question

What does corporate sustainability mean?

Answered: 1 week ago