Question
Ron Corporation had 8 million shares of common stock outstanding during the current calendar year. On July 1, Ron issued ten thousand $1,000 face value,
Ron Corporation had 8 million shares of common stock outstanding during the current calendar year. On July 1, Ron issued ten thousand $1,000 face value, convertible bonds. Each bond is convertible into 50 shares of common stock. The bonds were issued at face amount and pay interest semi- annually for 20 years. They have a stated rate of 12%. Jet had income before tax of $24 million and a net income of $18 million. Ron would report the following EPS data (rounded): a. Basic EPS $2.25 Diluted EPS $2.12 b. $2.25 n/a antidilutive c. $2.25 $2.16 d. $2.25 $2.24 A. Option A B. Option B C. Option C D. Option D
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