Question

Sweet Horizon Corp had the following items, all of which were outstanding throughout the entire fiscal...

Sweet Horizon Corp had the following items, all of which were outstanding throughout the entire fiscal year ending September 30, 2021:

● 750,000 common shares
● 290,000 $3 cumulative, no-par value preferred shares
● Options to purchase 110,000 common shares at $13 per share. The average market price of Sweet’s common shares during the year was $20 per share. None of the options were exercised or expired during fiscal 2021
● 9% bond with a face value of $2,000,000, convertible to 55,000 common shares.


Sweet’s net income for fiscal 2021 was $7,995,000, and its tax rate was 15%. Preferred dividends had been paid in all previous fiscal years.

Calculate Sweet’s diluted earnings per share for the year. (Round calculations of EPS to 3 decimal places, e.g. $3.545 and provide final answer to 2 decimal places, e.g. 15.25.)

Numerator Denominator EPS
Basic EPS $ $
Options
Sub Total $
                                                                      9% bondsOptions
Sub Total $ $
Diluted EPS
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