mmon stock sold at an average market price of $18 per share during the period. Also outstanding w exercised to purchase one share of common stock for $12 for each warrant exercised. Are the warrants dilutive? Compute basic earnings per share. (Round answer to 2 decimal places, e.g. 2.55.)
mmon stock sold at an average market price of $18 per share during the period. Also outstanding w exercised to purchase one share of common stock for $12 for each warrant exercised. Are the warrants dilutive? Compute basic earnings per share. (Round answer to 2 decimal places, e.g. 2.55.)
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 55E: Rebert Inc. showed the following balances for last year: Reberts net income for last year was...
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Question
![Blossom Corporation earned $272,000 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 $18 per share during the period. Also outstanding were 13,800 warrants that could
be exercised to purchase one share of common stock for $12 for each warrant exercised.
a. Are the warrants dilutive?
b. Compute basic earnings per share. (Round answer to 2 decimal places, e.g. 2.55.)
Basic earnings per share $
c. Compute diluted earnings per share. (Round answer to 2 decimal places, e.g. 2.55.)
Diluted earnings per share $](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe7a1a0bf-05c7-4850-a98f-9d9d7bca96d1%2F6f6cc65b-dca2-4463-86f0-703676aea432%2Fzqlfgf6_processed.png&w=3840&q=75)
Transcribed Image Text:Blossom Corporation earned $272,000 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 $18 per share during the period. Also outstanding were 13,800 warrants that could
be exercised to purchase one share of common stock for $12 for each warrant exercised.
a. Are the warrants dilutive?
b. Compute basic earnings per share. (Round answer to 2 decimal places, e.g. 2.55.)
Basic earnings per share $
c. Compute diluted earnings per share. (Round answer to 2 decimal places, e.g. 2.55.)
Diluted earnings per share $
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