Howard Corporation earned $480,000 during a period when it had an average of 100,000
common shares outstanding. The common shares sold at an average market price of $23 per share during the period. Also outstanding were 18,000 warrants that could each be exercised to purchase one common share for $10.
(a) Are the warrants dilutive?
(b) Calculate basic earnings per share.
(c) Calculate diluted earnings per share.