During the year 2021 a company earned P376,000 during a period when it had an average of 100,000 shares of common stock outstanding. The common stock sold at an average market price of P21 per share during the period. Also outstanding were 15,000 warrants that could be exercised to purchase one share of common stock for P14 for each warrant exercised. a Are the warrants dilutive in nature? b.Find basic eps? c. Find diluted eps?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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During the year 2021 a company earned P376,000 during a period when it had an average of 100,000
shares of common stock outstanding. The common stock sold at an average market price of P21 per
share during the period. Also outstanding were 15,000 warrants that could be exercised to purchase
one share of common stock for P14 for each warrant exercised.
a.Are the warrants dilutive in nature?
b. Find basic eps?
c.Find diluted eps?
Transcribed Image Text:During the year 2021 a company earned P376,000 during a period when it had an average of 100,000 shares of common stock outstanding. The common stock sold at an average market price of P21 per share during the period. Also outstanding were 15,000 warrants that could be exercised to purchase one share of common stock for P14 for each warrant exercised. a.Are the warrants dilutive in nature? b. Find basic eps? c.Find diluted eps?
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