Trusty Corp

question 27

Multiple Choice

Trusty Corp.has 20,000,7% bonds,convertible into 30 shares per bond.Each bond has a par value of $1,000.Trusty has 800,000 outstanding shares paying a $0.50 annual dividend.Earnings were $750,000 after paying $250,000 in taxes.Compute the diluted EPS.

• A) $0.54
• B) $0.94
• C) $1.29
• D) $1.71

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Definitions:

Suspicious

Characterized by or inclined to suspect something wrong without having evidence.

Environment

The surrounding physical, biological, social, and cultural context in which an organism or community lives, influencing development and behavior.

Daycare Center

A facility that provides care and education for young children during the day while their parents are at work or otherwise engaged.

Quiet

Characterized by little or no noise, offering an environment or demeanor that is calm or tranquil.