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jcarter jcarter
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5 years ago
A firm had 8,000 common shares outstanding at the end of the current period and earned $8,000
that period (net of tax). Also, options to purchase 5,000 shares at $5 each were outstanding all
year. For the entire year the firm had $20,000 of 6% debt and $10,000 of 8% debt outstanding.
The 8% debt is convertible into 500 common shares. The firm earns interest at 7 percent and has
a 50 percent tax rate. The diluted earnings per share for the current year should be (rounded to the
nearest cent):
A) $1.00
B) $.68
C) $.69
D) $.72
Textbook 
Intermediate Accounting, Volume 2

Intermediate Accounting, Volume 2


Edition: 5th
Authors:
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hauser27584hauser27584
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jcarter Author
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#2
5 years ago
Thank you
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