Use the Table for the Question(s)below

question 65

Multiple Choice

Use the table for the question(s) below.

-Refer to the income statement above.Luther has convertible bonds outstanding that would allow bondholders to convert their bonds into 700,000 shares of Luther stock.For the year ending December 31,2015 Luther's diluted earnings per share are closest to:

• A)$0.95
• B)$1.01
• C)$1.04
• D)$1.53
• E)$3.92

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Definitions:

Mandatory Dividend Provisions

Rules or clauses within a company's charter or bylaws that require the company to pay dividends to its shareholders under certain conditions.

Corporate Laws

Regulations and legal principles dealing with the formation, operation, and dissolution of corporations.

Legal

Pertains to the system of rules that are created and enforced through social or governmental institutions to regulate behavior.

Corporations

Legal entities formed by individuals, shareholders, or stakeholders, with rights and duties distinct from those of its members, and recognized as such by law.