Question: 1. Determine the Basic and Diluted Earnings Per Share for Company X. Company X information for Diluted Shares calculations for period 201X : Earnings for

1. Determine the Basic and Diluted Earnings Per Share for Company X.

Company X information for Diluted Shares calculations for period 201X:

Earnings for Year 201X - $20 million

Average Basic shares outstanding for Company X in 201X 10 million Average Stock Price for year 201X - $6.00

Warrants to purchase common shares: -

Warrants A to purchase 2 million shares ex @ $2.00

Warrants B to purchase 3 million shares ex @ $5.00.

Assume the A and B Warrants are the only additional securities outstanding (besides the basic shares) for Company X in 201X.

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