7. The following information is available for Barone Corporation:
January 1, 2019
Shares outstanding
April 1, 2019
Shares issued
July 1, 2019
Treasury shares purchased
October 1, 2019,
Shares issued in a 2-for-1 share dividend
1,250,000
200,000
75,000
Compute the weighted average shares outstanding for the year on December 31, 2019
a. 2,825,500
b. 2,737,500
c. 2,725,000
d. 1,706,250
8. On January 2, 2019, Worth Co. issued at par £2,000,000 of 7% convertible bonds; each £1,000
bond is convertible into 20 ordinary shares. As of Dec 31st 2019, the accrued interest expense on
the convertible bonds was £30,000 During 2019, Worth Co. had 200,000 ordinary shares
outstanding and net income was £600,000 and the income tax rate was 30%.
Compute Worth's diluted EPS for 2019 (round up to nearest decimal):
a. £2.60
b. £2.90
c. £3.00
d. £3.50
