Gila Corporation earned $2,650,000 during 2014 The company had an average of 520,000 shares of common stock outstanding The average market price of common stock was $32 per share during the year The company also had 50,000 warrants outstanding, of which two warrants could be exercised to purchase o...

a Dilutive The warrants are dilutive because the opti ...

Gila Corporation earned $2,650,000 during 2014. The company had an average of 520,000 shares of common stock

Question:

Gila earned $2,650,000 during 2014. The company had an average of 520,000 shares of outstanding. The average market price of was $32 per share during the year. The company also had 50,000 warrants outstanding, of which two warrants could be exercised to purchase one share of for $30 in total.

Instructions
(a) Are the warrants dilutive?
(b) Compute basic earnings per share.
(c) Compute diluted earnings per share.

Common Stock
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... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...