Question: Problem Six ( 8 points) Cool Candy Company issued 10 year $10,000,000 face value, 6% convertible bonds at par on January 1, 2022. Each bond

Problem Six ( 8 points)

Cool Candy Company issued 10 year $10,000,000 face value, 6% convertible bonds at par on January 1, 2022. Each bond has a par value of $1,000 with interest payable on December 31 of each year. The conversion ratio is 5:1 (5 shares of stock for each bond). No bonds have been converted into common stock. Cools tax rate is 20%. Net income (after tax) for 2022 was $45,000,000 and the Company has 10,000,000 common shares issued and outstanding during the entire year.

Required:

Please compute both basic and diluted earnings per share for 2022.

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