During the Current Year, High Corporation Had 3 Million Shares

question 173

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 10 shares of common. What is diluted EPS (rounded) ?

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

---

Definitions:

Triglycerides

A type of fat (lipid) found in your blood that the body uses for energy; high levels can increase the risk of heart disease.

Nasoenteric Tube

A tube inserted through the nose that extends into the stomach or small intestine, used for feeding or administering medication to patients unable to eat by mouth.

360 Degrees

A phrase often used to represent a holistic or comprehensive viewpoint, covering all possible angles or aspects.

45 Degrees

A measure of angle or inclination, often referenced in positioning patients for therapeutic or comfort reasons.