At December 31, 2015, Destin Sports Equipment had 200,000 common shares issued and outstanding. On May 31, 2016, Destin issued a 15% stock dividend. Fully vested, incentive stock options issued in 2014 and exercisable for 40,000 shares (adjusted for the stock dividend) were outstanding at the end of 2016, with an exercise price of $40 per share. The market price of Destin’s common stock averaged $50 per share during 2016. Also outstanding since 2010 were $100,000 of 10% bonds issued at face value and convertible into 30,000 common shares. Destin’s tax rate is 40% and 2016 net income was $550,000.

What is Destin’s 2016 diluted earnings per share?

Answer rating: 100% (QA)

Weighted avgno of common shares Opening Balance Stock ... View the full answer