What Will Angel Report as Diluted Earnings Per Share for 2009

question 2

Multiple Choice

What will Angel report as diluted earnings per share for 2009, rounded to the nearest cent?

• A)$6.43
• B)$6.25
• C)$6.22
• D)None of these is correct.* (2,000,000 5%) = $100,000 in interest; $100,000 20% = $20,000 in tax savings So, after-tax interest cost = $80,000.**Because, this increases EPS, it is anti-dilutive.Only $6.50 basic EPS will be reported.

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Definitions:

Interest Revenue

Income received from investments in bonds, loans, or other interest-bearing instruments, representing the compensation for lending funds or capital.

Maturity Date

The specific date on which the principal amount of a bond, loan, or other financial instrument is scheduled to be repaid.

Issued

Referring to securities or documents that have been officially released or distributed by an entity.

Due Date

The specific date by which a task needs to be completed or a payment needs to be made.