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Question 2 [15 points]: At 1 January 2020, Opera Inc. had 1,200,000 shares outstanding. On 1 May 2020, the company issued 240,000 new shares.
Question 2 [15 points]: At 1 January 2020, Opera Inc. had 1,200,000 shares outstanding. On 1 May 2020, the company issued 240,000 new shares. The company also reported net income of $ 2 million for the fiscal year 2020. In addition, the company has only one potentially dilutive security: $100,000 5 percent convertible bonds, convertible into a total of 20,000 shares. Assume a tax rate of 20 percent. a. What is the company's weighted average number of shares outstanding for 2020? (Show your calculation like A/B=C or (A+B)/C=D etc.) [5 points]: b. What is the company's basic EPS? (Show your calculation like A/B=C or (A+B)/C=D etc.) [2 points]: c. What is the company's diluted EPS? (Show your calculation like A/B-C or (A+B)/C=D etc.) [8 points]:
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a Calculating the weighted average number of shares outstanding for 2020 1 Weighted average shares f...Get Instant Access to Expert-Tailored Solutions
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