8. Andy Farmer Publications had the following results for the year ended December 31, 2022; Net Income - $1,500,000 Average Common Shares Outstanding - 1,000,000 On January 1, 2022 Andy Farmer Publication's issued 400,000 Stock Options with a two-year vesting period and a strike price of $10. The Company also had Convertible debt with a Face Value of $7,500,000 and an interest rate of 10% outstanding for all of 2022. Each $1,000 bond was convertible in to 40 shares of common stock. The tax rate was 30% and the average Fair Value of the Common Stock was $40 during the year. What amount should Andy Farmer Publications report as Diluted Earnings Per Share for the year ended December 31, 2022 (Round to the nearest penny)? $1.19 $1.27 $1.07 $1.15
8. Andy Farmer Publications had the following results for the year ended December 31, 2022;
Net Income - $1,500,000
Average Common Shares Outstanding - 1,000,000
On January 1, 2022 Andy Farmer Publication's issued 400,000 Stock Options with a two-year vesting period and a strike price of $10. The Company also had Convertible debt with a Face Value of $7,500,000 and an interest rate of 10% outstanding for all of 2022. Each $1,000 bond was convertible in to 40 shares of common stock. The tax rate was 30% and the average Fair Value of the Common Stock was $40 during the year. What amount should Andy Farmer Publications report as Diluted Earnings Per Share for the year ended December 31, 2022 (Round to the nearest penny)?
$1.19
$1.27
$1.07
$1.15
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
