Tama Company’s capital structure consists of common stock and convertible bonds. At the beginning of 2019, Tama had 15,000 shares of common stock outstanding; an additional 4,500 shares were issued on May 4. The 7% convertible bonds have a face value of $80,000 and were issued in 2016 at par. Each $1,000 bond is convertible into 25 shares of common stock; to date, none of the bonds have been converted. During 2019, the company earned net income of $79,200 and was subject to an income tax rate of 30%.
Required:
Compute the 2019 diluted earnings per share.
College Accounting, Chapters 1-27
Financial & Managerial Accounting
Accounting Information Systems
Financial Accounting
Managerial Accounting: The Cornerstone of Business Decision-Making
Financial And Managerial Accounting
Corporate Financial Accounting
Foundations of Business (MindTap Course List)
Essentials of Economics (MindTap Course List)
Essentials of Business Communication (MindTap Course List)
Brief Principles of Macroeconomics (MindTap Course List)
Contemporary Marketing
Management, Loose-Leaf Version
ECON: MICRO4 (New, Engaging Titles from 4LTR Press)
STATISTICS F/BUSINESS+ECONOMICS-TEXT
Principles of Macroeconomics (MindTap Course List)
Fundamentals of Financial Management (MindTap Course List)
MKTG 12:STUDENT ED.-TEXT
ECON MICRO
Fundamentals of Financial Management, Concise Edition (MindTap Course List)
Principles of Economics (MindTap Course List)
Principles of Microeconomics (MindTap Course List)
Accounting Information Systems
Financial Accounting
Accounting (Text Only)
Financial & Managerial Accounting
College Accounting (Book Only): A Career Approach
Exploring Economics
Statistics for Business & Economics, Revised (MindTap Course List)
Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
College Accounting (Book Only): A Career Approach
Pkg Acc Infor Systems MS VISIO CD
Principles of Macroeconomics (MindTap Course List)
Fundamentals of Financial Management (MindTap Course List)
Survey of Accounting (Accounting I)
PAYROLL ACCT.,2019 ED.(LL)-TEXT
Corporate Financial Accounting
Macroeconomics
Practical Management Science
Purchasing and Supply Chain Management
Economics For Today
Cornerstones of Cost Management (Cornerstones Series)
Economics (MindTap Course List)
Managerial Accounting
Cornerstones of Financial Accounting
Principles of Microeconomics
Micro Economics For Today
Economics: Private and Public Choice (MindTap Course List)
Microeconomics: Private and Public Choice (MindTap Course List)
Understanding Management (MindTap Course List)
MACROECONOMICS FOR TODAY
Macroeconomics: Private and Public Choice (MindTap Course List)