Epperson Co. had 100, 000 common shares outstanding at the beginning of 20x5. On July 1,...

 

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Epperson Co. had 100, 000 common shares outstanding at the beginning of 20x5. On July 1, 20x5, it issued 6% bonds at face value of $500, 000. The bonds were convertible into 20, 000 common shares. Assuming net income of $185, 000 and a tax rate of 40%, the diluted earnings per share for 20x5 will be (to the nearest cent): $2.00 $1.79 $1.76 $1.85 Epperson Co. had 100, 000 common shares outstanding at the beginning of 20x5. On July 1, 20x5, it issued 6% bonds at face value of $500, 000. The bonds were convertible into 20, 000 common shares. Assuming net income of $185, 000 and a tax rate of 40%, the diluted earnings per share for 20x5 will be (to the nearest cent): $2.00 $1.79 $1.76 $1.85

Answer rating: 100% (QA)

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