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Problem 116 points Arno Inc has 6,000,000 shares of common stock outstanding on December 31, 2023. No shares were issued in 2024. On January 1,
Problem 116 points Arno Inc has 6,000,000 shares of common stock outstanding on December 31, 2023. No shares were issued in 2024. On January 1, 2024, Arno issued 24,000, $1,000 face value, 8% convertible bonds. Each bond is convertible into 25 shares of common stock. No bonds were converted into common stock in 2024. Net income after taxes is $15,000,000 and the tax rate is 30%. Compute EPS and DEPS. Show all computations for the numerators and the denominators
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