ley.com$/$was$/$ui$/$N$2/$assessment$-$player$/$index$.$htm$/$Rlaunchld$=$dd$2$a$5$b$4$b$-$b$403-4$f$69-$ac$6$b$-8$a$263$eaa$4$a$95$#$/$question$/9$

Question $10$ of $24$

$\frac{-}{9}$

The following information was taken from the books and records of Wildhorse, Inc.:

Net Income

Capital structure:

$$360,000$

a$.$ Convertible:s $\%$ bonds. Each of the $330,$ $$1,000$ bonds is convertible into $50$ shares of common stock at the present date and for the next $10$ years.

b$.$ $$10$ par common stock, $180,000$ shares issued and outstanding during the entire year.

$330,000$

$1,800,000$

c$.$ Stock warrants outstanding to buy $15,840$ shares of common stock at $$20$ per share.

Other information:

a$.$ Bonds converted during the year

None

b$.$ Income tax rate

$30\%$

c$.$ Convertible debt was outstanding the entire year

d$.$ Average market price per share of common stock during the year

$$32$

e$.$ Warrants were outstanding the entire year

f$.$ Warrants exercised during the year

None