LOVE Co. had EPS of P15.00 for 2020 before considering the effects of any convertible securities. No conversion or exercise of convertible securities occurred during 2020. However, possible conversion of convertible bonds would have reduced EPS by P0.75. The effect of possible exercise of ordinary share options would have increased EPS by P0.10. What amount should LOVE Co. report as diluted EPS for 2020? A. P14.25 B. P14.35 C. P15.00 D. P15.10
LOVE Co. had EPS of P15.00 for 2020 before considering the effects of any convertible securities. No conversion or exercise of convertible securities occurred during 2020. However, possible conversion of convertible bonds would have reduced EPS by P0.75. The effect of possible exercise of ordinary share options would have increased EPS by P0.10. What amount should LOVE Co. report as diluted EPS for 2020? A. P14.25 B. P14.35 C. P15.00 D. P15.10
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
LOVE Co. had EPS of P15.00 for 2020 before considering the effects of
any convertible securities. No conversion or exercise of convertible
securities occurred during 2020. However, possible conversion of
convertible bonds would have reduced EPS by P0.75. The effect of
possible exercise of ordinary share options would have increased EPS by
P0.10. What amount should LOVE Co. report as diluted EPS for 2020?
A. P14.25
B. P14.35
C. P15.00
D. P15.10
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