Question: Please Help me ANSWER this! Give correct answer with appropriate explanation kudos! Question 6 The Ohana Corporation has 20,000 shares of common stock outstanding throughout
Please Help me ANSWER this! Give correct answer with appropriate explanation kudos!
Question 6 The Ohana Corporation has 20,000 shares of common stock outstanding throughout 2021. In addition, the corporation has 100, S1,000 par, 20-year, 8% bonds issued at par in Jan 1, 2015. Each $1.000 bond is convertible into 10 shares of common stock. There are 1.000 options issued during 2019, each exercisable for one share at $15. The average market price of Ohana's stock during 2021 was $30. None of the options has been exercised. There is no preferred stock outstanding. During the year 2021, the net income (after taxes) for the corporation was $60,000. The tax rate was 30%. None of the bonds was converted or redeemed. [15 points] 1 Required: a. Compute the diluted EPS. [round to two decimal places) b. Assume the same facts as assumed above, except that the 100 bonds were issued on March 1, 2021 (rather than Jan 1, 2015), and options are issued on Sep 1, 2021(rather than during 2019). Compute the diluted EPS. [round to two decimal places)
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