During the Current Year, East Corporation Had 2 Million Shares

question 116

Multiple Choice

During the current year, East Corporation had 2 million shares of common stock outstanding. Two thousand $1,000, 8% convertible bonds 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)$.90.
• B)$.95.
• C)$.89.
• D)$.94.

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Definitions:

Seeking New Markets

The strategy of exploring and entering new geographic or demographic areas to expand business operations and customer base.

Workforce Planning

A strategic approach to forecasting the current and future workforce needs of an organization to achieve its goals.

Human Capital

The total capabilities, knowledge, and non-material assets belonging to individuals that have the capability to produce monetary value for the people themselves, their employers, or their surrounding community.

External Demand

The desire or need for products or services that comes from outside an organization, influencing production levels, marketing strategies, and business growth.