Veres Inc.s net income is $120,000 and its weighted average common shares outstanding is 12,000. Veres Inc.
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Veres Inc.s net income is $120,000 and its weighted average common shares outstanding is 12,000. Veres Inc. has $1,000,000, 8%, 10 year convertible bonds, which were issued two years ago at a premium. This premium is amortized by $20,000 per year. Each $1,000 bond is convertible to 20 common shares. Corporate income tax rate is 20%. What is Veres Inc.s diluted EPS for the year rounded to the nearest dollar?
| a. | $5 | |
| b. | $10 | |
| c. | $9 | |
| d. | $7 | |
| e. | $6
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