On January 1, ABC Company has 120,000 outstanding ordinary shares. During the year, ABC reported net income of P 3,000,000. Income tax rate is 30%. In addition, ABC issued on May 1 a 1,800 P 1,000 10% convertible bonds at face amount. Each bond is convertible into 5 ordinary shares. How much is the diluted earnings per share?
On January 1, ABC Company has 120,000 outstanding ordinary shares. During the year, ABC reported net income of P 3,000,000. Income tax rate is 30%. In addition, ABC issued on May 1 a 1,800 P 1,000 10% convertible bonds at face amount. Each bond is convertible into 5 ordinary shares. How much is the diluted earnings per share?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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14
On January 1, ABC Company has 120,000 outstanding ordinary shares. During the year, ABC reported net income of P 3,000,000. Income tax rate is 30%. In addition, ABC issued on May 1 a 1,800 P 1,000 10% convertible bonds at face amount. Each bond is convertible into 5 ordinary shares.
How much is the diluted earnings per share?
Group of answer choices
25.00
23.81
25.70
24.48
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