Register
On April 1, 2018, Owl Co. sold $2,000,000, 5% bonds at par, convertible to 18,000 common stock, but not converted in 2018. In 2018 Owl reported $600,000 net income, declared no dividends, had a 20% tax
98.3k views
0 votes
On April 1, 2018, Owl Co. sold $2,000,000, 5% bonds at par, convertible to 18,000 common stock, but not converted in 2018. In 2018 Owl reported $600,000 net income, declared no dividends, had a 20% tax rate and 90,000 common shares outstanding all year. What is Owl’s 2018 diluted EPS?

User Jasonkarns
by
5.5k points

1 Answer

5 votes

Answer:$4.44

Step-by-step explanation:

Net income after tax is $600,00 less 20% =$480,000

Total shares for diluted eps 90,000+18,000= 108,000

Diluted eps= 480,000/108,000

= $4.44

.

User Tom Xue
by
5.7k points
Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

5.7m questions

7.4m answers

Other Questions

_____ reminds customers and clients that they made a good choice in selecting a company with which to do business, or it reminds them of the good qualities of their purchase.​
On august 1 the darius co. purchased a photocopy machine for $8,000. the estimated annual depreciation on the machine is $1,680. if the company prepares annual financial statements on december 31, the
When president obama was elected, the u.s. economy was in trouble, and has slid into a recession. consumer spending was low and getting worse. in an effort to stop the decline, president obama proposed
Ensuring that an individual is who they claim to be is the function of _____. select one: a. confidentiality b. authorization c. availability d. authentication e. nonrepudiation
The current market price for good y is above the equilibrium price, and then the price of a subsitute good, x, increases. the demand curve for good y shifts as a result. what is the likely outcome of the
Link Copied!