Answer:
c.$ 2.92 per share
Step-by-step explanation:
The earnings per share is calculated by dividing the net income by the weighted average number of shares outstanding. The bond holders converted their bonds into shares on July 01, 20x9 so their shares were only outstanding for 6 months.
The weighted average number of shares is determined as follows:
January - June 10,000 shares
July December 10,000 + (20 *200= 4,000 shares) 14,000 shares
The weighted average no of shares outstanding is 12,000 shares
The net income $ 35,000
Earnings per share $ 2.92 per share