During the Current Year, High Corporation Had 3 Million Shares

question 61

Multiple Choice

During the current year, High Corporation had 3 million shares of common stock outstanding. Five thousand, $1,000, 6% convertible bonds were issued at face amount at the beginning of the year. High reported income before tax of $4 million and net income of $2.4 million for the year. Each bond is convertible into ten shares of common. What is diluted EPS?

• A)$.85.
• B)$.86.
• C)$.80.
• D)$.79.

---

Definitions:

Unconscious Desires

Unconscious Desires are wishes, wants, or needs that an individual is not aware of but that influence behaviors and can be revealed through dreams, slip of the tongue, or psychoanalytical methods.

Mental Gestalts

Integrated patterns or configurations that arise from the psychological organization of thoughts, perceptions, or experiences.

Environmental Stimuli

External events or circumstances that can affect an organism's behavior or physiological responses.

Mental Associations

Mental associations are connections made between different ideas, feelings, or memories in the mind.