Question:
Ramirez Corporation has 500,000 shares of common stock outstanding throughout 2004. In addition, the corporation has 5,000, 20-year, 7% bonds issued at par in 2002. Each $1,000 bond is convertible into 25 shares of common stock after 9/23/05. During the year 2004, the corporation earned $600,000 after deducting all expenses. The taxrate was 30%.
Compute the proper earnings per share for 2004.