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The following information pertains to Beignet Inc. Net loss $(30,000) 8% Convertible bonds issued at par $225,000 Weighted-average common shares outstanding 200,000 Tax rate, 25%
The following information pertains to Beignet Inc.
Net loss $(30,000)
8% Convertible bonds issued at par $225,000
Weighted-average common shares outstanding 200,000
Tax rate, 25%
Each $1,000 bond is convertible into 10 shares of common stock at the option of the bondholder. The bonds were outstanding all year. The company computes diluted EPS using the if-converted method.
Calculate basic and diluted EPS for the year.
Basic EPS Diluted EPS
- $(0.15) $(0.15)
- $(0.15) $(0.08)
- $(0.11) $(0.11)
- $(0.11) $(0.04)
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