Mize Co (Morton): Calculate Diluted Earnings Per Share
Not what you're looking for?
On January 2, 2011, Mize Co. (Morton) issued at par $300,000 of 9% convertible bonds. Each $1,000 bond is convertible into 30 shares. No bonds were converted during 2007. Mize had 50,000 shares of common stock outstanding during 2011. Mize 's 2011 net income was $160,000 and the income tax rate was 30%. What would Mize's diluted earnings per share for 2011 be (rounded to the nearest penny)?
Purchase this Solution
Solution Summary
This post shows how to calculate diluted earnings per share.
Solution Preview
First calculate the no of common shared for diluted EPS calculations
No of common stocks = 50,000
Shares on conversion of convertible bonds = ...
Purchase this Solution
Free BrainMass Quizzes
Basics of corporate finance
These questions will test you on your knowledge of finance.
Production and cost theory
Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.
Social Media: Pinterest
This quiz introduces basic concepts of Pinterest social media
Balance Sheet
The Fundamental Classified Balance Sheet. What to know to make it easy.
Income Streams
In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.