Werth Corporation earned $260,000 during a period when it had an average of 100,000 ordinary shares outstanding.
Question:
Werth Corporation earned $260,000 during a period when it had an average of 100,000 ordinary shares outstanding. The ordinary shares sold at an average market price of $15 per share during the period. Also outstanding were 30,000 warrants that could be exercised to purchase one ordinary share for $10 for each warrant exercised.
Instructions
(a) Are the warrants dilutive.
(b) Compute basic earnings per share.
(c) Compute diluted earnings per share.
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Related Book For
Intermediate Accounting
ISBN: 978-0470616314
IFRS edition volume 2
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
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