Meyers Business Systems has 2 million shares of stock outstanding. Earnings with warrants after taxes are $4

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Meyers Business Systems has 2 million shares of stock outstanding. Earnings with warrants after taxes are $4 million. Meyers also has warrants outstanding, which allow the holder to buy 100,000 shares of stock at $10 per share. The stock is currently selling for $40 per share.

a. Compute basic earnings per share.

b. Compute diluted earnings per share considering the possible impact of the warrants. Use the formula:

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Foundations of Financial Management

ISBN: 978-1259024979

10th Canadian edition

Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta

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Question Posted: Jul 26, 2013 06:49 AM

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Meyers Business Systems has 2 million shares of stock outstanding. Earnings with warrants after taxes are $4

Question:

Mar. 1 May 5 Oct. 12 Purchased 10,000 shares of treasury stock for $17 per share. Sold 4,000 shares of treasury stock for $16 per share. Sold 2,000 shares of treasury stock for S18 per share.

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Meyers Business Systems a Basic earnings per share b Dilu...View the full answer

Foundations of Financial Management

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