Question

The following information was taken from the books and records of Cullumber, Inc.:

1.		Net Income				$391,400
2.		Capital structure:
		a.		Convertible 6% bonds. Each of the 290, $1,000 bonds is convertible into 50 shares of common stock at the present date and for the next 10 years.		290,000
		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

Compute basic earnings per share. (Round answer to 2 decimal places, e.g. 52.75.)

Basic earnings per share

$

Compute diluted earnings per share. (Round answers to 2 decimal places, e.g. 52.75.)

Security		EPS
Common Stock		$
Warrants		$
Conversion Bonds		$

Answer 1