The following information was taken from the books and records of Carla Vista, Inc.:
1.
Net Income
$414,200
2.
Capital structure:
a.
Convertible 6% bonds. Each of the 260, $1,000 bonds is convertible into 50 shares of common stock at
the present date and for the next 10 years.
260,000
b.
$10 par common stock, 190,000 shares issued and outstanding during the entire year.
1,900,000
c.
Stock warrants outstanding to buy 15,040 shares of common stock at $20 per share.
3.
Other information:
a. Bonds converted during the year
None
b.
Income tax rate
30%
c.
Convertible debt was outstanding the entire year
d.
Average market price per share of common stock during the year
$32
e.
Warrants were outstanding the entire year
f.
Warrants exercised during the year
None
(a2)
Your answer is partially correct.
Compute diluted earnings per share. (Round answers to 2 decimal places, e.g. 52.75.)
Security
EPS
Common Stock
$
2.18
Warrants
$
2.08
Conversion Bonds
$
2.00
