An analyst gathers the following data: 1,000,000 common shares outstanding (no change during the year). $6,500,000 net income. $500,000 preferred dividends paid. $600,000 common dividends paid. $60 average market price of common stock for the year. 100,000 warrants outstanding exercisable for one common share each at $50. The company's diluted earnings per share is:

An analyst gathers the following data: 1,000,000 common shares outstanding (no change during the year). $6,500,000 net income. $500,000 preferred dividends paid. $600,000 common dividends paid. $60 average market price of common stock for the year. 100,000 warrants outstanding exercisable for one common share each at $50. The company's diluted earnings per share is:

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 38MCQ

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