At December 31, 2010, Benjamin Company had 700 shares of common stock outstanding. On September 1, 2011,
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At December 31, 2010, Benjamin Company had 700 shares of common stock outstanding. On September 1, 2011, an additional 300 shares of common stock were issued. In addition, Benjamin had $20,000 of 8 percent convertible bonds outstanding at December 31, 2010, which are convertible into 400 shares of common stock. No bonds were converted into common stock in 2011. Net income for the year ended December 31, 2011, was $6,000. Assuming an income tax rate of 50 percent what would be the company’s diluted earnings per share for the year ended December 31, 2011?
a. $7.50
b. $5.67
c. $5.00
d. $4.33
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
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Related Book For
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
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