BMS Ltd. had 2,200,000 average shares outstanding during all of 2017. During 2017, BMS also had 50,000options outstanding with exercise prices of $17 each. The average stock price of BMS during 2017 was $21. Thiscompany also had 1,000 shares of preferred stock outstanding (10%. $100 par value) for the entire year, whichare each convertible into 20 shares of common stock. If net income of the company was 500,000, what is thediluted earnings per share for 2017?A.$0.224B.$0.220C.$0.226D.$0.225

To calculate the diluted earnings per share (EPS) for BMS Ltd. for 2017, we need to account for the…

Answered: BMS Ltd. had 2,200,000 average shares…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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