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Mize Co (Morton): Calculate Diluted Earnings Per Share

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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)?

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This post shows how to calculate diluted earnings per share.

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First calculate the no of common shared for diluted EPS calculations
No of common stocks = 50,000
Shares on conversion of convertible bonds = ...

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