SOLUTION IS PROVIDED IN THE BOTTOM. MY QUESTION IS IN CAP AT THE


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SOLUTION IS PROVIDED IN THE BOTTOM. MY QUESTION IS IN CAP AT THE VERY END> Assume that the following data relate to Rosen, Inc. for the year 2013: Net income (30% tax rate) $3,000,000 Average common shares outstanding 2013 1,000,000 shares 10% cumulative convertible preferred stock: Convertible into 80,000 shares of common $1,600,000 8% convertible bonds; convertible into 75,000 shares of common $2,500,000 Stock options: Exercisable at the option price of $25 per share; average market price in 2013, $30 84,000 shares Instructions Compute (a) basic earnings per share, and (b) diluted earnings per share. SOLUTION $3,300,000 – $160,000 (a) Basic EPS = ——————————— = $2.09 WHERE DID THE $3,300,000 COME FROM? 1,500,000 wazoo
posted a question · Aug 26, 2014 at 12:57am

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