Werth Corporation earned $260,000 during a period when it had an average of 100,000 ordinary shares outstanding. The ordinary shares sold at an average market price of $15 per share during the period. Also outstanding were 30,000 warrants that could be exercised to purchase one ordinary share for $10 for each warrant exercised.
(a) Are the warrants dilutive.
(b) Compute basic earnings per share.
(c) Compute diluted earnings per share.