Liver Co. has basic eps of $1.00 per share (net income of $50,000 and 50,000 weighted-average shares outstanding, with no preferred stock). Liver also has 5,000 warrants outstanding that permit the holder

to buy one common stock each for $35. The stock price of Liver varied between $26 and $49 over the year

(closing at $40), with an average of $38 over the year. What should Liver show for diluted eps for the year?

Answer rating: 100% (QA)

Solution Computation of the Diluted Earning Per Share Formula Dil... View the full answer