East Corporation had 2 million shares of common stock outstanding. Two thousand 8% convertible bonds, each with $1,000 face value, were issued at face amount at the beginning of the year. Each bond is convertible into 10 shares of common stock. The tax rate is 25%. North reported net income of $4 million for the year. What is diluted EPS (rounded)? a. $4.20 b. $4.00 c. $1.00 O d. $0.90 e. $3.80

East Corporation had 2 million shares of common stock outstanding. Two thousand 8% convertible bonds, each with $1,000 face value, were issued at face amount at the beginning of the year. Each bond is convertible into 10 shares of common stock. The tax rate is 25%. North reported net income of $4 million for the year. What is diluted EPS (rounded)? a. $4.20 b. $4.00 c. $1.00 O d. $0.90 e. $3.80

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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