FC Reported Earnings of $12,000,000

question 123

Multiple Choice

FC reported earnings of $12,000,000.During the year FC issued a convertible bond that could be,if fully converted,increase FC's shares outstanding by 575,000.If FC currently has 4,800,000 shares outstanding and the after-tax cost of the convertible bonds is $850,000,what is FC's diluted EPS?

• A) $2.50
• B) $2.39
• C) $2.89
• D) $3.48

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