During the Current Year, East Corporation Had 2 Million Shares

question 211

Multiple Choice

During the current year, East Corporation had 2 million shares of common stock outstanding. Two thousand 8% convertible bonds, each with $1,000 face value, were issued at face amount at the beginning of the year. East reported income before tax of $3 million and net income of $1.8 million for the year. Each bond is convertible into 10 shares of common stock. What is diluted EPS (rounded) ?

• A) $0.90.
• B) $0.95.
• C) $0.89.
• D) $0.94.

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Definitions:

Cognitive Processes

Mental operations involved in acquiring knowledge and understanding, including perception, memory, judgment, and reasoning.

Forebrain

The anterior part of the brain, including the cerebrum and structures related to it, responsible for the majority of higher cognitive functions.

Cognitive Functions

Mental processes that involve the acquisition of knowledge, manipulation of information, and reasoning, including perception, memory, and decision-making.

Lashley

Refers to Karl Spencer Lashley, an American psychologist and behaviorist well-known for his research on learning and brain function.