Blue Ltd. reported $4,886,625 of net income for the fiscal year ended December 31, 2021. The company had 392,500 weighted average common shares outstanding for the year. The common shares sold at an average market price of $20 per share during the period. Also outstanding during the fiscal year were 24,000 warrants that could be used to purchase 5 common shares each at a price of $18. None of the warrants were exercised during the fiscal year. Are the warrants dilutive? Calculate basic earnings per share. Calculate diluted earnings per share. Please show how it was calculated
Blue Ltd. reported $4,886,625 of net income for the fiscal year ended December 31, 2021. The company had 392,500 weighted average common shares outstanding for the year. The common shares sold at an average market price of $20 per share during the period. Also outstanding during the fiscal year were 24,000 warrants that could be used to purchase 5 common shares each at a price of $18. None of the warrants were exercised during the fiscal year. Are the warrants dilutive? Calculate basic earnings per share. Calculate diluted earnings per share. Please show how it was calculated
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 24E
Related questions
Question
Practice Pack
Blue Ltd. reported $4,886,625 of net income for the fiscal year ended December 31, 2021. The company had 392,500 weighted average common shares outstanding for the year. The common shares sold at an average market price of $20 per share during the period. Also outstanding during the fiscal year were 24,000 warrants that could be used to purchase 5 common shares each at a price of $18. None of the warrants were exercised during the fiscal year.
Are the warrants dilutive?
Calculate basic earnings per share.
Calculate diluted earnings per share.
Please show how it was calculated
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Includes step-by-step video
Learn your way
Includes step-by-step video
Step by step
Solved in 2 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College