Genesis Company computes Basic E.P.S. as $4.00. Potential dilutors appear to be individually dilutive: convertible preferred at $3.80 and, convertible bonds at $3.84. After inclusion of the convertible preferred, the earnings per share calculation equals $3.88. After inclusion of the convertible bonds also, the earnings per share calculation equals $3.90. Genesis Company would report the following Earnings Per Share: Basic $4.00 and Diluted $3.88. Basic $4.00 and Diluted $3.90. Basic $4.00 and Diluted $3.80. Basic $4.00 only.
Genesis Company computes Basic E.P.S. as $4.00. Potential dilutors appear to be individually dilutive: convertible preferred at $3.80 and, convertible bonds at $3.84. After inclusion of the convertible preferred, the earnings per share calculation equals $3.88. After inclusion of the convertible bonds also, the earnings per share calculation equals $3.90. Genesis Company would report the following Earnings Per Share: Basic $4.00 and Diluted $3.88. Basic $4.00 and Diluted $3.90. Basic $4.00 and Diluted $3.80. Basic $4.00 only.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA2: Investments
Section: Chapter Questions
Problem 7MCQ
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Genesis Company computes Basic E.P.S. as $4.00. Potential dilutors appear to be individually dilutive: convertible preferred at $3.80 and, convertible bonds at $3.84. After inclusion of the convertible preferred, the earnings per share calculation equals $3.88. After inclusion of the convertible bonds also, the earnings per share calculation equals $3.90. Genesis Company would report the following Earnings Per Share:
Basic $4.00 and Diluted $3.88.
Basic $4.00 and Diluted $3.90.
Basic $4.00 and Diluted $3.80.
Basic $4.00 only.
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