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Suppose Company ABC has the following structure of shares and dilutive securities at the end of a fiscal year: Weighted average common shares outstanding: 7
Suppose Company ABC has the following structure of shares and dilutive securities at the end of a fiscal year:
Weighted average common shares outstanding:
Convertible preferred shares: convertible into
shares of common stock each, and paying a dividend of $ per share.
Convertible Debt: $ of bonds convertible into
shares
Stock options outstanding at the beginning of the year:
with an exercise price of $the average market price of company shares during the year was $ per share
Net income before preferred dividend $ million, tax rate:
Based on the information above, calculate the following:
Note: use two decimal places for basic earning per share and diluted earning per share. Assume that none of these securities are antidilutive.
Basic Earnings per share BEPS
Additional shares issued if preferred shares converted?
Additional shares issued if debt converted?
Additional shares issued If options exercised inthemoney
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