Question: Use the same information as in E17-13, except for the changes in part (c). Assume instead that 40% of the convertible bonds were converted to

Use the same information as in E17-13, except for the changes in part (c). Assume instead that 40% of the convertible bonds were converted to common shares on April 1, 2012.
Instructions
(a) Calculate Mininova’s weighted average common shares outstanding.
(b) Calculate Mininova’s basic earnings per share for 2012.
(c) Calculate Mininova’s diluted earnings per share for 2012.
(d) What do you notice about the results of the diluted earnings per share calculation when conversions occur during the year and when they do not occur?

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a Number of shares for basic earnings per share Dates Outstanding Shares Outstanding Fraction of Year Weighted Shares Jan 1April 1 April 1Dec 1 60000 ... View full answer

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