Blossom Corporation earned $272,000 during a period when it had an average of 100,000 shares of common stock outstanding. Thecommon stock sold at an average market price of $18 per share during the period. Also outstanding were 13,800 warrants that couldbe 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 $

Formula: Earnings per share = ( Net income - Total preferred dividends ) / Total outstanding shares

Answered: mmon stock sold at an average market…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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.)