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Diluted EPS-Solution
Diluted EPS-Solution
During 2019, ABC Inc issued 10,000 convertible Preferred shares paying preffered dividend of 5%, par $100 p
outstanding. Each Preferred stock will be converted into 5 shares of common stock.
Also In 2019 ABC Inc issued, at par, 1000, $1,000, 8% bonds, each convertible into 100 shares of common stoc
Stock Options outstanding at the beginning of the year: 10,000 with the exercise price of $50 (Average market
company shares during the year was $60 per share)
Calculate Diluted Earnings per share Assume tax rate – 30% and company have Jan-Dec as Financial Year
Diluted EPS
500,000
56,000
556,000
106,667
50,000
100,000
1,667
258,333
2.1523