Wow, Inc. had 59,000 common shares (issued and outstanding) in 2023. Wow also had $4,000,000 of 6% convertible bonds outstanding throughout the year. The bonds are convertible into 40,000 shares of common stock. Net income for the year was $350,000. The tax rate is 35%. Required: Compute diluted earnings per share (rounded to 2 decimal places) for the year ended December 31, 2023.
Wow, Inc. had 59,000 common shares (issued and outstanding) in 2023. Wow also had $4,000,000 of 6% convertible bonds outstanding throughout the year. The bonds are convertible into 40,000 shares of common stock. Net income for the year was $350,000. The tax rate is 35%. Required: Compute diluted earnings per share (rounded to 2 decimal places) for the year ended December 31, 2023.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Wow, Inc. had 59,000 common shares (issued and outstanding) in 2023. Wow also had $4,000,000 of 6%
convertible bonds outstanding throughout the year. The bonds are convertible into 40,000 shares of
common stock. Net income for the year was $350,000. The tax rate is 35%. Required: Compute diluted
earnings per share (rounded to 2 decimal places) for the year ended December 31, 2023.
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