What are diluted earnings per share


Shipley Corporation had net income for the year of $480,000 and a weighted average number of common shares outstanding during the period of 200,000 shares. The company has a convertible bond issue outstanding. The bonds were issued four years ago at par ($2,000,000), carry a 7% interest rate, and are convertible into 40,000 shares of common stock. The company has a 40% tax rate. what are Diluted earnings per share?

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: What are diluted earnings per share
Reference No:- TGS075427

Expected delivery within 24 Hours