what is the number of shares Feterik should use to compute diluted earnings per
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
On December 31, 2001, Feterik Company had 7,000 shares of common stock issued and outstanding. On April 1, 2002, an additional 1,000 shares of common stock were issued and on July 1, additional 500 shares were issued. As of December 31, 2001 10, P1,000 maturity value, 8% convertible bonds were outstanding. Each bond is convertible into 40 shares of common stock. No bonds were converted into common stock in 2002. Assuming there are no antidilutive securities, what is the number of shares Feterik should use to compute diluted earnings per share for the year ended December 31, 2002?
Choices;
8,000
8,100
8,500
8,400
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