Marion Company has 30,000 shares of common stock outstanding during all of 2019. This common stock has been selling at an average market price of $45 per share. Marion also has outstanding for the entire year compensatory share options to purchase 4,000 shares of common stock at $32 per share. The unrecognized compensation cost (net of tax) relating to these share options is $3 per share. During 2019, Marion earned income of $36,000 after income taxes of 30%. Assume Marion uses IFRS. Compute its earnings per share assuming IFRS is used.
Marion Company has 30,000 shares of common stock outstanding during all of 2019. This common stock has been selling at an average market price of $45 per share. Marion also has outstanding for the entire year compensatory share options to purchase 4,000 shares of common stock at $32 per share. The unrecognized compensation cost (net of tax) relating to these share options is $3 per share. During 2019, Marion earned income of $36,000 after income taxes of 30%.
Assume Marion uses IFRS. Compute its earnings per share assuming IFRS is used.
Diluted EPS is the Diluted earnings per share which refer to a reduction in earnings of the entity on account of the issue of certain shares or instruments which are convertible to equity shares. It is a dilution in the Basic earnings per share of the company. The diluted EPS is computed using basic EPS by adding additional convertible shares in the denominator.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
