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

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.

why investors should be more interested in the the Diluted EPS number than the Basic EPS number

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