Wildhorse Corporation earned $422,000 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 $15 per share during the period. Also outstanding were 14,700 warrants that couldbe exercised to purchase one share of common stock for $10 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 $

Earnings Per Share: The profit of a business is divided by the total quantity of shares that are…

Answered: Wildhorse Corporation earned $422,000…

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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The Carlton Corporation has $4 million in earnings after taxes and 2 million shares outstanding. The stock trades at a P/E of 30. The firm has $1 million in excess cash. a. Compute the current price of the stock. (Do not round intermediate calculations and round your answer to 2 decimal places.) b. If the $1 million is used to pay dividends, how much will dividends per share be? (Do not round intermediate calculations and round your answer to 2 decimal places.)

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