Cheyenne Corporation earned $2,755,000 during 2025. The company had a weighted-average of 554,000 shares of common...

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Cheyenne Corporation earned $2,755,000 during 2025. The company had a weighted-average of 554,000 shares of common stock outstanding. The average market price of common stock was $34 per share during the year. The company also had 53,000 warrants outstanding, of which two warrants could be exercised to purchase one share of common stock for $32 in total. (a) Are the warrants dilutive? Yes (b) Compute basic earnings per share. (Round answer to 2 decimal places, e.g. 2.55.) Basic earnings per share $ (c) Compute diluted earnings per share. (Round answer to 2 decimal places, e.g. 2.55.) Diluted earnings per share $ Cheyenne Corporation earned $2,755,000 during 2025. The company had a weighted-average of 554,000 shares of common stock outstanding. The average market price of common stock was $34 per share during the year. The company also had 53,000 warrants outstanding, of which two warrants could be exercised to purchase one share of common stock for $32 in total. (a) Are the warrants dilutive? Yes (b) Compute basic earnings per share. (Round answer to 2 decimal places, e.g. 2.55.) Basic earnings per share $ (c) Compute diluted earnings per share. (Round answer to 2 decimal places, e.g. 2.55.) Diluted earnings per share $

Answer rating: 100% (QA)

a To determine if the warrants are dilutive we need to compare the exercise price of the warrants to ... View the full answer